Summer University courses: economic impact, economic perspectives

Global Events Congress IVLeeds, July 2010

Eva MartínJordi Sardà

Outline

•Introduction

•Business tourism and economic cycle

•Events organized by UdL

•Methodology

•Economic impact

•Conclusions

Economic impact by event organization

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

Year 200818,790 meetings

770.942 attendants in 19953.356.432 attendants in 2008

—Spain Convention Bureau

Event and economic cycle

Direct economic impact4,560 billion euro

0.42% Spain’s GDP

—Spain Convention Bureau

Event and economic cycle

Event and economic cycle

90

110

130

150

170

190

210

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Meetings Participants GDP

Number of meetings and participants and GDP real (1999 = 100)

Event and economic cycle

-10

-5

0

5

10

15

20

25

30

2000 2001 2002 2003 2004 2005 2006 2007 2008

0

1

2

3

4

5

6

Meetings Participants GDP

Number of meetings and participants and GDP real. Variation rates.

Attendance at events is independent of the economic

cycle

Tourism business events a priori is not affected by crises

Event and economic cycle

Number of meetingsQuarterly distribution

Quarter 1 22%

Quarter 2 36%Quarter 3 15%

Quarter 4 28%

Main period

•Autum and Spring

•Key role in helping to the deseasonalisation of tourism

The average expenditure of a business tourist is 3.2 times

higher than a traditional tourist

—IET

Event and economic cycle

Number of meetingsSectoral distribution

Medical / Health 21%

Economic / Commerce 20%

Cultural 8%Universities 8%

Technology 8%

Public 7%

Scientific 6%

Others 22%

University of Lleida (UdL)

•Medium-small size university

•About 8,000 students in seven faculties

•Located in northeastern Spain

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LleidaLleida

University of Lleida (UdL)

Founded year 1300

Created on 12th Desember 1991

7 faculties in 4 campusMore than 50 grades and master

Summer University

Since 1993Opened to university students and to the societyFar from the headquarters of the UniversityDuring 2009, 39 courses16 courses held in la Seu d’Urgell during 2 weeks385 attendats and 63 teachers

Summer University

33% students of the own University

7% from other spanish universities

60% from professional field

71% province of Lleida

12% Catalonia

Other points of Spain and Europe

Teachers and students answered a questionnaire

on the distribution and amount of their expenses during their stay in the

summer courses

Research process

385 students, 344 (the 89.35%) answered the survey

108 came from the area, were not taken into account as generators of economic impact

Sample

63 teachers, 38 (the 60.3%) answered the survey

About 32% of these teaching staff brought their families and their expenses were also included

Sample

Expenditure distribution

 Organization

and Professors

Students Total

Commerce 3,550.00 € 9,968.29 €13,518.29

€

Hospitality 37,995.70 €57,091.49

€95,087.19

€

Transports 2,815.20 € 0.00 € 2,815.20 €

Entrepreneurial Services

937.20 € 1,660.94 € 2,598.14 €

Total 45,298.10 €68,720.72

€114,018.8

2 €

Input Output Methodology

Measure the capacity of generating benefits by the organization of an event

Economic Impact

Input Output Methodology

X = (I – A)-1 * Y

Total = Total * FinalOutput Requirements Demand

X is the production vector of the economy, I is the identity matrix, A is the matrix of technical coefficients, Y is the total final demand vector of the economy and (I – A)-1 is the Leontief inverse matrix

ΔX = (I – A)-1 * ΔY

Sectors receiving investment

Sectors receiving investment

InvestmentInvestment

Direct EffectDirect Effect InputsDemandInputs

Demand

Target sectorsOf inputs demandTarget sectors

Of inputs demand

Indirect EffectIndirect Effect

Total EffectTotal Effect

EmploymentEmployment

ConsumptionConsumption

Sectors productionSectors

production

Induced effectInduced effect

Economic Impact Sectoral

distribution

Agriculture 1%

Minerals 0%

Manufactures 14%

Energy 3% Construction 2%Commerce 13%

Hospitality 37%

Transports 6%Banks 3%

Entrepreneurial Services 16%

Education 1%

Sanitary 1%

Other services 3%

v

Economic Impact

  Production Multiplier

effectsDirect Effect 114,018.8 1.00Indirect Effect 50,080.5 0.44Induced Effect 140,056.4 1.23Total Effect 304,155.7 2.67

Conclusions

Revitalization the tourism with visitors for academic and

professional purposes

They generate revenues in the city with its consumption

Global impact in production is 2.67 times larger than the initial demand generated by UdL summer courses

3.4% of GDP at 2006 prices of the city during these fifteen days

Conclusions

Conclusions

Social benefits: promotion of the city through the media that covers

the visit of personalities or bringing studies to a city where

there is no university.

Positive economic impact because it helps to increase tourism

revenues.

Conclusions

Universities can use summer courses to advertise themselves through the news in the press

Summer courses can be used as test laboratories when planning new

future actions

Conclusions

Finally, this paper may serve as a decision tool for city councils in

order to try to host summer courses in their city organized by any

University

Summer University courses: economic impact, economic

perspectives

Global Events Congress IVLeeds, July 2010

Eva MartínThank you very much Jordi Sardà