Conference industry: perspectives and development directions of Lviv Lviv, March 11, 2015
Agata Niemczyk Renata Seweryn Tourism Department Cracow University of Economics
Conference industry: perspectives and development directions of Lviv Lviv, March 11, 2015
1. Kraków as a tourism destination 2. Kraków as a business tourism destination 3. Methodology of the influence of meetings industry on Kraków’s economy 4. Impact of the meetings industry on the economy of Kraków in 2013 5. Conclusion
Krak贸w as a tourism destination
Source: http://pl.wikipedia.org/wiki/Stare_Miasto_w_Krakowie# mediaviewer/File:Krakow_rynek_01.jpg
Source: http://wyborcza.pl/1,75475,13853942,Pod_znakiem_lwa__Festiwa l_Kultury_Zydowskiej_odmieniony.html
Source: http://www.bryla.pl/bryla/51,85301,8431541.html?i=4
Source: http://krakow.dlastudenta.pl/st udia/artykul/Miedzynarodowy_ Dzien_Otwarty_na_UE,30393.ht ml
Source: http://www.sfora.biz/gospodar ka/Oto-najlepsze-galeriehandlowe-w-Polsce-g50453
Number of tourist guest
10 000 000 9 000 000 8 000 000 7 000 000 6 000 000 5 000 000 4 000 000 3 000 000 2 000 000 1 000 000 0
9 900 000
7 250 000
Total number of visitors Domestic visitors
Foreign visitors
2 650 000
2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Source: data of research conducted at the request of the City Office, under the supervision of the Małopolska Tourism Organisation
Krak贸w as a business tourism destination
Source: http://pl.hotels.com/de1053546-th14p2/biznesowe-hotels-krakow-polska/page-2/
Source: http://www.tripadvisor.co.uk/Hotel_Reviewg274772-d1728175-Reviews-Hilton_Garden_Inn_KrakowKrakow_Lesser_Poland_Province_Southern_Poland.html
Source: http://www.parkinn.pl/hotel-krakow Source: http://www.polhotels.com/Cracow/Qubus/index 2.htm
Source: http://krakow.pl/ccb/11614,artykul,miedzynarodowe _centrum_targowo-kongresowe_expo_krakow.html
Source: http://wislacanpack.pl/wisla-can-packkrakow-zagra-w-krakow-arenie/
Source: http://news.o.pl/2014/03/24/zbigniewpreisner-centrum-konferencyjne-ice-koncertkrakow/
Number of tourist guest
Total number of business visitors
1 000 000 900 000 800 000 700 000 600 000 500 000 400 000 300 000 200 000 100 000 0
7,78%
Domestic business visitors
770 000
Foreign business visitors
570 000 7,86%
200 000 7,55%
2008
2009
2010
2011
2012
2013
2014
Source: data of research conducted at the request of the City Office, under the supervision of the Małopolska Tourism Organisation
In 2012 – 1855 group meetings In 2013 – 3413 group meetings In 2012 – 286 898 participants In 2013 – 427 980 participants
22%
2012
Events
42%
59%
75%
2013
46%
2012 0%
20%
8% 8%
2% 17%
3% 8%
2% 5% 40%
14%
47% 60%
80%
Conferences/congresses
Fairs/exhibitions
Incentive events
Corporate events
Source: Own study based on PCB POT database.
100%
Participants
42%
2013
I 5% 7%
10%
9%
10%
11%
5% 4%
11%
12%
9%
6%
II III
2013
IV V
VI VII VIII IX
X 7%
7%
12%
9%
9%
8%
6% 5%
10%
10%
11%
7%
2012
XI XII
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Source: Own study based on PCB POT database.
1 day
2 days
3 and more days
80% 70%
60% 50% 40% 30% 20% 10% CE Nat.
CE Nat.
CE Inter
CE Inter.
IE Nat.
IE Nat.
IE Inter.
IE Inter.
F/E Nat.
F/E Nat.
F/E Inter.
F/E Inter.
C/C Nat.
C/C Nat.
C/C Inter.
C/C Inter.
0%
2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 C/C – congress/conference; F/E – fair/exhibition; IE – incentive events; CE –corporate events Source: Own study based on PCB POT database.
„For our city congress is like a plane throwing dollars�
Smith G.V. (1990), The growth of conferences and incentives [in:] Quest M. (ed.), Horwath Book of Tourism, Macmillan, London, p. 68.
Steering the meetings industry in Kraków: assessment and monitoring of the economic effect of the meetings industry on the economy of Kraków with the use of good practices from Switzerland PROJECT CO-FINANCED BY SWITZERLAND UNDER THE SWISS PROGRAMME OF COOPERATION WITH OTHER EUROPEAN UNION MEMBER STATES
Krzysztof Borodako – chief Jadwiga Berbeka Agata Niemczyk Renata Seweryn
www.krakowimpact.pl
Methodology of the influence of meetings industry on Kraków’s economy
Primary data taken from Cracow Convention Bureau of the Municipal Office of Kraków – MICE tourism in Kraków research (years 2008-2011)
Primary data taken from Poland Convention Bureau POT (Polish Tourism Organization) years: 2012 and 2013
Primary data taken from main surveys (92 business meetings, 1294 entities on the demand and supply sides of the meetings industry)
Secondary data taken from Central Statistical Office of Poland
Secondary data taken from Statistical Office in Kraków
Used data Primary data taken from pilot surveys (16 business meetings)
Selectioned data taken from program: Kraków’s Scientific Meetings (years 2012, 2013)
Secondary data taken from reports: Travel and tourism economy in Kraków
Secondary data taken from: Statistical Yearbook of Kraków
ď ˝
ď ˝ ď ˝
participants in congresses and other group business meetings of similar character (congresses, conferences, seminars, symposiums, training sessions, workshops and other corporate events, incentive events), visitors to trade fairs and exhibitions, exhibitors at fairs
Shopping
13
Recreation
28 33
Entertainment
68
31 39
9 13
Culture
95
71 67
21 27 11 15
Transport Food and drinks
86
47 48
Accommodation during the meeting Accommodation before and after the meeting
74
252
121
178
30
76
23
Integrative event Fair admission fee
10
Participation fee USD
226 0
Trade exhibitors
30
60
90
120
Trade visitors
150
180
210
240
270
Meetings participants
Source: own calculation based on survey results.
30,91% 32,00%
Shopping 3,64% 4,00% 2,51%
Recreation Entertainment
3,64% 10,40%
Culture
26,40% 29,29% 26,28%
45,24% 45,45%
49,09% 45,60% 53,26%
Transport Food and drinks Accommodation during the meeting
66,80% 78,18% 64,89%
40,80%
Accommodation before and after the meeting
40,00%
1,60% 6,92% 3,64%
Integrative event Fair admission fee
94,55% 83,20%
32,80%
Participation fee
83,45% 0%
Trade exhibitors
10%
20%
30%
Trade visitors
40%
50%
60%
70%
80%
90% 100%
Meetings participants Source: own calculation based on survey results.
1800
1 684
100%
98,18%
90%
1600 1400
80%
1 311
70%
1200
60%
1000
50% 800 600
711 596
506
30%
400 200
20% 9,09%
7,27% 62
0
USD
40%
Employment Fair Handling of additional Agency staff from services Krakow
3,64%
5,45%
1,82% Free tickets Organisation Advertisment Costs of for partners of an event for renting space partners at the fair
10% 0%
Source: own calculation based on survey results.
Group (Sector) Group 01 Handicraft, retail sale
% share in the group (sector) 13,76%
Group 02 Hotels
76,85%
Group 03 Restaurants
24,18%
Group 04 Transport
12,69%
Group 05 Travel agents, guides
9,00%
Group 06 Culture
22,60%
Group 07 Recreation, physical well-being
16,01%
Group 08 Creative industries and others activities
14,45%
Source: Own study based on survey results and on the data obtained from the Statistical Office in Krak贸w.
Idea of Multiplier economic effects
The increase in tourism traffic THE LOCAL ECONOMY a flow of capita development of small and medium enterprises new jobs generated
higher turnovers of local enterprises more money earned by local population more taxes paid to the budget
K = a + b + c, where: K – Multiplier economic effects on the area, a – Direct effects, b – Indirect effects, c – Induced effects.
T&T INDIRECT
Accommodation Catering, Entertainment Recreation, Transportation & other Travel Related Services Printing/Publishing, Utilities Financial Services, Sanitation Services, Furnishing & Equipment Suppliers, Security Services, Rental Car Manufacturing, Transportation Administration, Tourism Promotion, Ship Building, Aircraft Manufacturing, Resort Development, Glass Productions, Iron/Steel
T&T DIRECT
T&T INDUCED
Food & Beverage Supply, Retailers Business Services, Wholesalers, Computers, Utilities, Manufactures, Housing, Personal Services Source: The Comparative Economic Impact of Travell & Tourism, WTTC, November 2012, p. 4.
Impact of the meetings industry on the economy of Kraków’s in 2013
GDP
The adjusted value of the GDP for the meetings industry group in Krak贸w in 2013 was
USD 329,6 mln.
The share of the GDP of the meetings industry amounts approximately to
2.37% of the GDP of Krak贸w in 2013.
Employment
Group (Sector) Group 01 Handicraft, retail sale
Number of employed* 980
Group 02 Hotels
3 163
Group 03 Restaurants
1 617 768
Group 04 Transport
61
Group 05 Travel agents, guides Group 06 Culture
886
Group 07 Recreation, physical well-being
182
Group 08 Creative industries and others activities TOTAL
1 233
8 890
* The number of employed quoted is equivalent to the number of employees in the statistics of the Statistical Office calculated as full-time equivalent employment. Source: Own study based on survey results and on the data obtained from the Statistical Office in Krak贸w.
Having accounted for indirect and induced effects, the number of employed was
12 214
estimated at persons for the entire meetings industry in Krak贸w.
The overall share of the employment generated by the meetings industry was
3.25% of the entire Krak贸w economy in 2013.
Salaries
Total value of gross salaries in USD 5 041 015
Group (Sector) Group 01 Handicraft, retail sale
17 545 119
Group 02 Hotels
Group 03 Restaurants
3 724 018
Group 04 Transport
7 170 752
Group 05 Travel agents, guides
Group 06 Culture Group 07 Recreation, physical well-being Group 08 Creative industries and others activities TOTAL
49 9 480 147 15 043
528 962 925 373
58 202 692
Source: Own study based on survey results and on the data obtained from the Statistical Office in Krak贸w.
Having taken of account of the indirect and induced effects, the overall value of net salaries in 2013 in the entire meetings industry in Krak贸w was
USD 97 378 924. The overall share of the gross salaries generated by the meetings industry in the entire economy of Krak贸w in 2013 was
4.0%.
Taxes and levies
Types of revenue stream entering the Treasury of the Municipality of Krak贸w
155 441.20
Corporate Income Tax (CIT)
14 555 791.83
Personal Income Tax (PIT)
Natural Persons Business Tax paid in the form of a tax card Other taxes and levies (including real estate, vehicle and local taxes)
TOTAL
Amount in USD
80 937.16
3 709 771.90
18 501 942.1
Source: Own study based on survey results and on the data obtained from the Statistical Office in Krak贸w.
Having accounted for the indirect and induced effects, the overall value of taxes and levies generated by the meetings industry in Krak贸w was estimated at
USD 27 630 686. The overall value of the taxes and levies generated by the meetings industry
2.4%
corresponded to of the revenue of the Treasury of the Municipality of Krak贸w in 2013.
Terms of impact of the meetings industry on the economy of Krak贸w GPD
USD 329.6 mln
Employment
12 214 persons
Salaries Taxes and levies
Amount in 2013
USD 97.3 mln USD 27.6 mln
The overall share in the economy of Krak贸w in 2013 2,37% 3,25% 4,00% 2,40%
Source: Own study based on survey results and on the data obtained from the Statistical Office in Krak贸w.
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