16 towards a worldwide solution for meetings

8/3/2019 16 Towards a Worldwide Solution for Meetings

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International Congress and Convention Association www.iccaworld.com

Towards a WorldwideSolution for MeetingsIndustry StatisticsThe Successful Start byCanada

Didier Scaillet MPI

Ken Ross Maritz Research

Paul Kennedy RTE

Christian Mutschlechner - ICCA


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TSA Extension andThe Canadian Start

The TSA Extension Initiative:ICCA, MPI, RTE and UNWTO

The MPI Foundation Canada

Connecting the dots...

A milestone research

The activation: why is itimportant?


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Canadian EconomicImpact Study (CEIS) Team


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Strategic Objective

Recognition that the Canadianmeetings sector supports a distinct

and credible economic activity


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Project Overview

Phase I Primary data collection(supply side)

Phase II Primary data collection(demand side)

Phase III Economic Impact analysis(direct)

Phase IV Economic Impact analysis(indirect and induced)

Phase V Final reporting, recommendations


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Project Overview


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Project Overview

DirectContributions

Tax SourcesGRAT

Labour SourcesLFS


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Project Overview

Impact Model

Indirect and Induced Impacts

Tax

Module


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Data Collected

PHASE I SUPPLY-SIDE PHASE II DEMAND-SIDE

Economicvariables

- Fees/commissions

- Cost/expenditures (detailed)

- Revenues/sales (detailed)

- Expenditures (detailed)

Non-economiccharacteristicvariables

- Types of meetings

- Number and origin of delegates(local/ domestic/international)

- Host of meeting/client type

- Length of meeting

- Venue type

- Types of meetings

- Origin (local/domestic/ International)

- Host of meeting

- Length of meeting

- Length of stay (for visitors)

- Primary purpose (for visitors)

- Venue type

The scope ofMeeting Activitiesin Canada wasdefined by theweighted andprojected Phase I& II surveyresearch


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Summary of QuestionnaireSections by Survey Groups

PHASE I SUPPLY-SIDE PHASE II DEMAND-SIDE

Meeting Organizers

Questionnaire/Sectionsincluded "In-house" "Independent"

VenueManagers Delegates Speakers Exhibitors

AnnualSummary of

Meetings byMeeting type

Up to 2 meetingtypes asked

Up to 2 meetingtypes asked

All 6Meeting

types asked

NA NA NA

IndividualMeeting by type

Up to 2 specificmeetings(by type)asked

Up to 2 specificmeetings(by type)asked

NA Up to 2specificmeetings(by type)asked

Up to 2specificmeetings(by type)asked

Up to 2specificmeetings(by type)asked


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Concepts:Definition of Meeting

The term Meeting includes everything from small gatherings ina booked room to larger Conventions, Conferences, Consumershows, Trade shows and Incentive travel meetings.

A meeting may be held once or be re-occurring, eitheroccasionally or at regular fixed intervals.

Aim: To bring together a number of people in oneplace, to confer or carry out a particularactivity. (Excluding sporting or entertainmentevents.)

Size: 10 or more people.

Length: 4 hours or more.

Venue: A room or location in a commercial venue,requiring a contract or agreement for use(with or without payment.)


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Concepts:Meeting and Venue Types

MEETING Types: Conferences/Conventions/Congresses

Consumer Show/Consumer Exhibition

Trade Show/Business Exhibition

Incentive Meeting

Other Business Meetings

Other Meeting

VENUE Types: Purpose built major convention/exhibition centre

Hotel with meeting facilities under 10,000 square feet in size

Hotel with meeting facilities 10,000 or more square feet in size

Resort property with meeting facilities (excludes Hotels)

Special Event Venue/Halls (without bedrooms)

Attraction with facilities able to be used for meetings (but not builtspecifically for this purpose)

University or College with meeting facilities Other venue with meeting facilities


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Concepts:Economic Activity: Who & What(Sectors, Industries & Commodities)

Sector 1 Sector 2

Industry 1.1

Industry 1.2

Industry 1.3

Industry 1.4

Industry 1.5

Commodity 1.1.1Commodity 1.1.2


Commodity 1.3.1

Commodity 1.4.1

Commodity 1.5.1Commodity 1.5.2Commodity 1.5.3

Industry 2.1

Industry 2.2



Commodity 2.2.3


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Concepts:System of National Accounts

The System of National Accounts (SNA) : The financial books of acountry. A set of statistical statements providing an aggregated portrait ofnational economic activity.

Input-Output (I-O) Tables: Show the production of goods and services,the generation of income from the production process and the flows ofgoods and services through the economic system between producers andconsumers.

Input-output (I-O) Model: Provides a detailed breakdown of economicactivity among industries and a detailed breakdown of their inputs andoutputs by commodity associated with a given demand. A structural modeldealing primarily with resource allocation in the economy corresponding toa given demand. (For the CEIS Meetings Demand.)

Satellite Account: A satellite to the main accounts in the SNA. Aframework in which particular industry activity is grouped together usingthe concepts, definitions and classification systems of the SNA thereby

allowing for an official and compatible measure of the contribution of asector (not formally part of the SNA) to an economy. Example: theTourism Satelite Account (TSA).


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Concepts: Meetings ActivityExpansions to the CTSA

1) Expansion of the scope of demand covered bythe CTSA to included unique meetingsparticipants.

2) Expansion of the CTSA to include MeetingsIndustries.

3) Expansion of the list of commodities reportedon by the CTSA.

The goal of a credible measure of the contributionof the Meetings Sector cannot ignore the significanceof Meetings Industries, nor the commodities uniqueto Meetings Activity. Extension of the existing CanadianTourism Satellite Account (CTSA) to include MeetingsActivity can occur in three ways:


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Concepts: The CTSA and aMeetings Extension

Meetings Activity can be partially accounted for within the CTSA for thatportion of its activity that is attributable to tourism demand (if identified asa distinct aggregate within the CTSA).

The CEIS provides a starting point for the identification of Tourism and non-Tourism (meetings expansion) elements and activities.

A long term goal would be the establishment of a Meetings ActivitiesExpansion of the industries and commodities covered by the CTSA(endorsed by bodies such as the UNWTO).

A formal Meetings Activities Extension would detail the overlap with theCTSA in a shared area of economic activity and expand to include uniqueeconomic contributions led by the Meetings Sector.


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Concepts: Direct EconomicContribution & Modeled Impact

Direct Impacts relate ONLY to the impact onfront-line businesses. For instance: a hotel directlyreceiving monies for the use of a meeting space.

Indirect impacts speak to the supply chain anindirect impact of meetings activity would be asupplier benefiting from spending by a hotel that

hosts meetings.

Induced impacts make use of different I-O modelspending drivers then the ones used for the directand indirect impacts these drivers are designed toreplicate consumer spending. The consumption ofconsumer goods by employees of a hotel would be

one such example.


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KEY FIGURES of the CEIS

Meetings Activity in Canada, 2006 :

671,000 Meetings

70.3 Million Participants

The Economic Contribution Generated:

$32.2 Billion Direct Spending (Demand)

$11.3 Billion Direct contribution to GDP

235,500 Direct employment

$71 Billion Industry Output


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Meetings Activityin Canada, 2006

Survey research and projections were set to answer:

How many meetings?

What type of meetings were they?

Where were the meetings held? (venue types)

Who attended the meetings? (participant types, andorigin)

How many attended the meetings?

How much was spent by participants?


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Participants by Meeting type,Venue and Place of Origin

CONFERENCES/CONVENTIONS/CONGRESSES

CONSUMERSHOWS/CONSUMEREXHIBITIONS

TRADESHOWS/BUSINESSEXHIBITIONS

INCENTIVEMEETINGS

OTHERBUSINESSMEETINGS

OTHERMEETINGS TOTAL

Total Participants 23,1 03,9 00 15,6 53,6 00 3,71 9, 50 0 4,109,000 15,5 46,8 00 8,122,700 70,255,500

Share of Total 33% 22% 5% 6% 22% 12% 100%

By Venue

Purpose Built 6,765,000 14,570,000 2,522,300 289,900 3,343,500 3,926,700 31,417,500

Hotels/Resorts 15,360,200 953,300 953,900 3,011,800 9,658,900 2,579,700 32,517,800

Special Event 694,300 100,400 170,100 400,500 2,021,500 1,546,900 4,933,800

Other 284,300 29,900 62,300 406,800 522,900 69,400 1,375,600

By Origin

Local 12,616,000 9,461,100 1,938,300 1,078,200 8,661,000 6,606,300 40,360,900

Other intra-Province

6,424,600 2,667,100 593,200 1,681,900 4,913,400 293,800 16,574,000

Other Canada 3,387,700 2,994,500 755,300 1,043,100 1,772,100 929,400 10,882,100

International 675,600 530,900 432,700 305,800 200,300 293,200 2,438,500

Over one-half ofConference/Convention/Congressparticipants werelocal - theytraveled under 40km to attend the

meeting


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Average Delegate Spending atMeeting (by Place of Origin and Meetings Type)

DELEGATE PLACE OF ORIGIN

MeetingType Local

InsideProvince

OutsideProvince

OutsideCountry

Average:AllDelegates

Conference $128 $326 $763 $1,781 $341

Consumer $266 $372 $383 $1,426 $346

Trade $520 $260 $1,059 $1,799 $742

Incentive $589 $246 $772 $1,398 $555

Other Business $100 $241 $471 $1,651 $212

Other Meeting $119 $196 $310 $382 $154

The average totalexpenditures, asexpected, increasedas the distancetraveled to attend ameeting increased


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Total Expenditures by ParticipantType and Meeting Type

PARTICIPANTS

Meeting Type Total Delegates Exhibitors Speakers Total

Conf erence $7,121,390,000 $203,096,000 $253,385,000 $7,577,871,000

Consumer $5,320,338,000 $702,751,000 $7,368,000 $6,030,457,000

Trade $2,635,328,000 $230,355,000 $10,784,000 $2,876,467,000

Incentive $2,269,106,000 - $4,554,000 $2,273,660,000

Other Business $3,103,425,000 $63,219,000 $99,487,000 $3,266,131,000

Other Meeting $1,224,302,000 $406,000 $15,463,000 $1,240,171,000

All Meeting Types $21,673,889,000 $1,199,827,000 $391,041,000 $23,264,757,000

Totalexpenditureswerehighest forConferences/Conventions/Congresses


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Participant spending:Products by All Meeting Types

ALL MEETING TYPESTOTALDELEGATES EXHIBITORS SPEAKERS TOTAL

Total spending $21,673,887,000 $1,199,825,000 $391,043,000 $ 23,264,754,000

Total meeting registration fees(including optional components)

$ 5,102,012,000 $ 483,984,000 - $ 5,585,995,000

Accommodation $ 2,863,734,000 $ 167,122,000 $162,663,000 $ 3,193,519,000

Shopping (e.g., souvenirs, clothing,toiletries, etc.)

$ 1,811,893,000 $ 21,765,000 $ 285,000 $ 1,833,943,000

Long haul transport (from thecity/locality you live in to the host city;e.g., air travel, long-distance train orcoach, vehicle fuel costs if you drove)

$ 2, 94 6,42 5,000 $ 47,027,00 0 $ 78,7 61, 000 $ 3,072, 213, 000

Local and short haul transport (withinthe host city/locality, or excursionsoutside of the host city/locality; e.g., taxi,local public transport, rail or bus, carrental)

$ 1,745,453,000 $ 7,515,000 $ 6,943,000 $ 1,759,911,000

Food and beverage from restaurants,cafes and bars

$ 3, 66 7,99 7,000 $ 16,913,00 0 $ 88,2 11, 000 $ 3,773, 121, 000

Food beverage from retail outlets (e.g.,supermarkets)

$ 1, 09 5,79 7,000 $ 105,103, 00 0 $ 32,6 92, 000 $ 1,233, 591, 000

Entertainment and recreation (e.g.,theatre, cinema, sports events, golf,bicycling, canoeing, kayaking)

$ 1,147,242,000 $ 5,567,000 - $ 1,152,809,000

Tours (e.g., sightseeing) $ 536,211,000 $ 6,109,000 - $ 542,320,000

Other $ 757,123,000 $ 338,720,000 $ 21,488,000 $ 1,117,332,000

The Study wasbased onreaching keyconstituenciesinvolved inMeetings Activity,and askingthem about key

expenditures


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Economic Contribution of MeetingActivity in Canada, 2006

The economic modeling set out to estimate:

Demand for commodities by industries

Supply of commodities by industries

Share of Supply (of Tourism Commodities)

accounted for by Meetings Demand Employment generated

Contribution to the GDP

Effect on taxes (all levels of Government)

Industry Output (Total value of shipments)


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Total Meeting Demand in Canada

CATEGORY OFEXPENDITURE

EXPENDITURECOM MO DI TY ALL P ARTI CIP ANTS

NON-PARTICIPANTS(Sponsors & OtherStakeholders) TOTAL DEMAND

MEETINGCOMMODITIES

Registration fees $5,586,000,000 $ 5,586,000,000

Other meeting feesand contributions $ 6,706,000,000 $ 6,706,000,000

TOURISMCOMMODITIES

Transportation $3,644,000,000 $ 3,644,000,000

Accommodation $3,194,000,000 $ 3,194,000,000

Food & BeverageServices $3,773,000,000 $ 3,773,000,000

Other tourismcommodities $1,658,000,000 $ 1,658,000,000

OTHERCOMMODITIES

(Tourism or Meetingsrelated othercommodities) $5,410,000,000 $ 2,212,000,000 $7,622,000,000

TOTAL MEETINGEXPENDITURES $23,265,000,000 $ 8,918,000,000 $ 32,183,000,000

Meetingcommoditiesaccounted for$12.3 billion inmeetings-relatedexpenditures, thelargest share ofany category


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Supply of Meetings and TourismCommodities (& Demand share)

CATEGORY COMMODITY TOTAL SUPPLY

TOTAL

MEETINGSDEMAND

TOTAL

TOURISMDEMAND

LOCAL

MEETINGSDEMAND

MEETINGFEES

Registrationfees N/A $5,586,000,000 $3,288,000,000 $2,298,000,000

Other meetingfees andcontributions N/A $ 6,706,000,000 - -

TOURISMCOMMODITIES

Transportation $69,469,000,000 $3,644,000,000 $24,366,000,000 $718,000,000

Acc om modation $11,691,000,000 $ 3,194,000,000 $10,631,000,000 $225,000,000

Food &BeverageServices $49,657,000,000 $3,773,000,000 $9,895,000,000 $1,640,000,000

Other tourismcommodities $27,406,000,000 $1,658,000,000 $10,534,000,000 $619,000,000

OTHER

COMMODITIES

(Tourism orMeetingsrelated other

c ommodities ) N/A $7,623,000,000 $11,114,000,000 $2,020,000,000

TOTALCOMMODITIES N/A $32,184,000,000 $69,828,000,000 $7,519,000,000

There are severalgaps in the data,particularly on thesupply side,because data isnot presentlycollected formany meeting andmeeting-relatedcommodities


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Direct Employment Generated byMeetings Activity

Meeting Industries

Meeting Venues 16,000

Meeting Organizers 15,900

Total Meeting Industries 31,900

Tourism Industries

Transportation 21,800

Air 5,100

Rail 300

Other transportation 16,400

Accommodation 43,400

Food & Beverage Services 53,000

Other Tourism Industries 23,700

Recreation and Entertainment 17,800

Travel Services 5,900

Total Tourism Industries 141,800

Other industries 61,800

Direct employment generated by Meetings Activity 235,500

The directemploymenteffect of MeetingsActivity ontourism industriesis substantial


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Direct GDP Generated byMeetings Activity

Meeting Industries

Meeting Venues $1,398,038,000

Meeting Organizers $1,220,246,000

Total Meeting Industries $2,618,284,000

Tourism Industries

Transportation $1,061,143,000

Air $351,401,000

Rail $38,112,000

Other transportation $671,630,000

Accommodation $1,885,013,000

Food & Beverage Services $1,206,975,000

Other Tourism Industries $798,511,000

Recreation and Entertainment $512,004,000

Travel Services $286,507,000

Total Tourism Industries $4,951,642,000

Other industries $3,710,865,000

Direct GDP generated by Meetings Activity $11,280,791,000

Tourism industriesaccounted for44 per cent ($4.9billion) of the directGDP generated bymeeting activity


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Economic Contribution (Impact)of Meetings Activity GDP ($millions)

Direct Effects $11,281

Indirect Effects $12,851

Induced Effects $9,563

Total Economic Contribution $33,695

Economic benefitsare derived fromnot only the directeffects of meetingsexpenditures butalso the spin-off

- indirect andinduced effects ofthe originalexpenditures


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Economic Contribution (Impact) ofMeetings Activity Employment(thousands of full-year jobs)

Direct Effects 235.5

Indirect Effects 195.8

Induced Effects 152.2

Total Economic Contribution 583.5

Two thirds of thetotal economiccontribution wasderived fromindirect and

induced effectsassociated withmeeting spending


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Effects on Taxes ($millions)

Category of TaxDirectEffect

IndirectEffect

InducedEffect

Income Tax $1,248 $1,446 $1,064

Corporate Tax $320 $460 $341

Social Security Contributions $732 $815 $550

GST $985 $399 $524

PST $864 $243 $550

Other Federal & Provincial Taxes $1,181 $1,008 $789

Municipal Taxes $355 $398 $302

Total $5,685 $4,769 $4,120

Level of GovernmentDirectEffect

IndirectEffect

InducedEffect

Federal $2,918 $2,363 $2,050

Provincial/Territorial $2,411 $2,009 $1,768

Municipal $355 $398 $302

Total $5,685 $4,769 $4,120

Taxes onproductsaccounted for themajority of thedirect taxescollected


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Economic Contribution (Impact) ofMeetings Activity Industry Output($millions)

Industry Output, also referred to as gross output or total value ofshipments, involves double counting on the part of the intermediateproduction phase. (By comparison GDP is a net measure.) This estimate isprovided as it presents a broad picture of the impact of the flow ofexpenditures.

Industry Output captures the cumulative total of all intermediate inputs(utilities, supplies, purchased services) used in the production process as wellas the value of what is produced for final users.

Example: Industry Output associated with the production of a car includes:the cost of the steel + the cost of steel and the cost of the production of thecar + the cost of the steel and the cost of the production of the car and theprice of the car (to the consumer).

Direct Effects $32,183

Indirect Effects $20,208

Induced Effects $18,697

Total Economic Contribution $71,088

The broadestmeasure usedto depict theeconomiccontribution ofan activity isindustry output


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Towards Tomorrow

The Canadian Economic ImpactStudy is a beginning.

The future has to bring official

recognition of the economiccontribution of Meetings Activity

to the global economy.


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The MPI/RTE/ICCA/UNWTO

Steering Committee update

- What happened since EIBTM

- The new focus by the SteeringCommittee

- Case study countries and theredefined role of UNWTO


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The UNWTO Criteria

Meeting to motivateparticipants and to conductbusiness

Meeting size Minimum of 10

participants

Meeting venue venue wherethere is a payment

Meeting duration half day

(4 hours) or more


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The UNWTO Criteria

All types of meetings are included Meetings, congresses, conferences,

exhibitions, corporate meetings, incentivesetc.

There is no differentiation between nationaland international

If a differentiation is needed - internationalmeans 20% of participants come from

outside the country


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We moved from theory to practice with theCanadian Case study

We still have a long way to go!


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Thank you!

47

th

ICCA Congress & Exhibition

International Congress & Convention Association

16 towards a worldwide solution for meetings

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