+ Influence of the meetings industry on the economy of Kraków Based on the project 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
Krzysztof Borodako – chief Jadwiga Berbeka
Agata Niemczyk Renata Seweryn
+
Agenda
1.
Kraków as the city of meetings industry
2.
Methodology of the influence of meetings industry on Kraków’s economy
3.
Conclusion – resulats of our research
+
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/
Source:http://krakow.pl/ccb/zorganizuj_spotkanie /11454,artykul,krakow_airport.html
Source: http://serwisy.gazetaprawna.pl/transport/galerie
Source: http://wiadomosci.dziennik.pl/wydarzenia/galeria-full/
+ Kraków rich with meetings and their participants – tourists!!!
+
Meetings industry in Kraków in 2012-2013 In
2012 – 1855 group meetings
In
2013 – 3413 group meetings
In
2012 – 286 898 participants
In
2013 – 427 980 participants
42%
2013
22%
2012
Events
42%
59%
2%
75%
2013
0%
20%
3% 8%
2%5%
46%
2012
8%
40%
8%
17%
14%
47%
60%
80%
Conferences/congresses Fairs/exhibitions Incentive events Corporate events Source: Own study based on PCB POT database.
100%
Participants
Share of business events and their participants hosted in Krak贸w in 2012-2013 broken down by meeting type
+Share of individual months in the annual total of business events organized in Kraków in 2012–2013
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%
Source: Own study based on PCB POT database.
100%
+
Duration of business events in Kraków in 2012–2013 by types 1 day
2 days
3 and more days
80% 70% 60% 50% 40%
30% 20% 10% 0% C/C C/C C/C Inter. Inter. Nat.
C/C F/E F/E F/E Nat. Inter. Inter. Nat.
F/E IE IE IE Nat. Inter. Inter. Nat.
IE CE CE CE Nat. Inter. Inter Nat.
CE Nat.
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.
+ Methodology of the influence of meetings industry on Kraków’s economy
+ RESEARCH GOAL the
estimation of the economic significance
of meetings industry for the economy of with special focus on the key parameters: GDP Employment (annual FTEs) Salaries Taxes and levies
KRAKÓW
+
Detailed goals
How
many days in average last the events in Kraków? How long the business tourists stay in Kraków (before, during and after the event)? Are the business tourists coming to the Kraków alone or with accompanying persons? How much and on what purposes they spend money in Kraków? What kind of lodging do they select for sleep? How the costs of the organizers, intermediaries and host venues balance with the expenditure of the participants?
+
Research process
1) the review of literature concerning the impact of tourism (in general, business tourism and meetings industry in particular) on economy of the state, region or a city; 2) the review of accessible secondary statistical data, concerning tourism and selected economy sectors in Krak贸w;
+
Primary data taken from Cracow Convention Bureau of the Municipal Office of Kraków – MICE tourism in Kraków research (years 2008-2011)
Secondary data taken from Central Statistical Office of Poland
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) Primary data
taken from pilot surveys (16 business meetings)
Secondary data taken from Statistical Office in Kraków
Used data
Secondary data taken from reports: Travel and tourism economy in Kraków
Secondary data taken from: Statistical Yearbook of Kraków
Selectioned data taken from program: Kraków’s Scientific Meetings (years 2012, 2013)
+
Research process
3) classification of economy (PKD 2007) was used as the basis of our methodology; 4) activities included in meetings industry was set aside in accordance with framework of Statistical Office in Krak贸w; 5) plus Creative industries and other activities; Group (Sector) Group Group Group Group Group Group Group Group
01 02 03 04 05 06 07 08
Handicraft, retail sale Hotels Restaurants Transport Travel agents, guides Culture Recreation, physical well-being Creative industries and others activities
Number of chosen subclasses 6 3 4 7 6 7 7 10
+
Research process
6) questionnaires – were prepared and applied at pilot survey in Kraków;
+
Research process five different questionnaires
+
Research process
The research process was consulted with Swiss partners and representatives of the meetings industry from Krak贸w
+
Research process
7) main survey, conducted on a sample of 92 meetings;
Value of average expenditure by congress or + other similar business meetings participants, trade visitors and exhibitors in Krak贸w in 2013 (in USD per person) 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.
Share of participants in congress or other similar + business meetings participants, trade visitors and exhibitors in Krak贸w in 2013 incurring expenditure during their stay in the city (broken down by type) 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.
Share of exhibitors at fairs in Krak贸w broken +down by type of personal expenditure in the city and the average spending per an exhibitor (in USD) in 2013 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.
+ 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
Used data Primary data taken from pilot surveys (16 business meetings)
Secondary data taken from Statistical Office in Kraków
Secondary data taken from reports: Travel and tourism economy in Kraków
Secondary data taken from: Statistical Yearbook of Kraków
Selectioned data taken from program: Kraków’s Scientific Meetings (years 2012, 2013)
+SHARE HELD BY THE MEETINGS INDUSTRY IN SELECTED SECTORS OF THE KRAKÓW ECONOMY IN 2013 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 Kraków.
+ Research
process
8) a direct impact of meetings industry on the selected sectors of Krak贸w economy was calculated; Terms of impact of the meetings industry on the economy of Krak贸w
Amount in 2013
Employment
8 890 persons
Salaries
USD 58.2 mln USD 18.5 mln
Taxes and levies
+
As we know ……
+
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
+
Source: http://www.wetplanetwhitewater.com/rafting/put-your-money-where-your-values-are-green-drinks-andsustainable-travel/
+
Research process
9) use multipliers obtained from model: Tourism Economics, calibrated for Kraków’s data; Terms of impact of the meetings industry on the economy of Kraków 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 Kraków 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 Kraków.
+ Final report
http://krakowimpact.pl/ wp-content/uploads/kiraport-2014-EN-WEB.pdf
+
Thank you for your attention Agata Niemczyk agata.niemczyk@uek.krakow.pl
Renata Seweryn renata.seweryn@uek.krakow.pl