Post on 18-Nov-2014
description
Universities as Events Organizers: Economic Impact and Importance as
Business Tourism
Authors:
Jordi Sardà Eva Martín
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Index
Introduction
Business tourism
Events organized by UdL
Economic impact
Conclusions
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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
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University of Lleida (UdL)
Medium-small size university
About 9,000 students in seven faculties
Located in northeastern Spain
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Lleida
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University of Lleida
The event expenses are covered by
Registration fees Contributions from private companies Public funding
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Public funding
Why should the public institutions fund
the events organized by University of Lleida?
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Benefits
Social benefits Good reputation Contribut to enlarge global knowledge New influx of tourist for professional
reasons
Economic benefits?
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Main purpose
Analyzing the economic profit generated by organizing scientific and academic events at UdL
And to see whether these benefits compensated the investment made by public institutions
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Business Tourism
Also known as a MICE IndustryEurope is the continent hosting the largest
number of meetingsBenefits in the host place
Business tourist expends much more than other kind of tourists
Useful as a marketing tool Infrastructure development
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Business Tourismin Lleida
Progress in hosted events
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Business Tourismin Lleida
Progress in event attendance
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Events organized by UdL
Attract people from all over Catalonia, Spain and the entire globe
They will later consume in the city and bring in economic profits
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Events organized by UdL
Classification by type: Conferences Workshops or symposia Scientific meetings
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Events organized by UdL
Classification by field: Health and Medicine Technology Social Sciences, Economics, Law and
Education Language and Literature
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Health and Medicine
27.3 % total events
Most national tourists
Funding by private companies
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Social Sciences, Law, Economics and Education
47.3 % total events
Most regional tourists
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Technology
18.2 % total events
Most international tourists
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Language and Literature
7.3 % total events
Various origins
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Events organized by UdL
Only 3.2% of event organizer declined to provide the attendances origin, the revenues and the expenses
The rest provide all the information
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Revenues Event Organization
Source Total Percentage
Registration 613,521.22 51.8%
Public 357,105.24 30.1%
Private 214,557.00 18.1%
Total 1,185,183.46 100.0%
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Benefit
The economic benefits come from the money expended in Lleida by participants of the
events
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Benefit
Estimated by means of secondary sources
Report on business tourism demand in Lleida (Turespaña)
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Expenses by tourists
74.76 euros
18,66%
56,20%
11,32%
13,20%0,62%
ShoppingFoodUrban TransportLeisureOthers
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Incomes
Three scenarios
Most favorable (MFE)
Intermediate (IE)
Less favorable (LFE)
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Net results
Favorable Scenario
Intermediate Scenario
Less Favorable Scenario
2006 2007 2006 2007 2006 2007
Income 597,933 612,949 534,211 542,338 493,565 469,910
Public Financing
216,700 240,804 216,700 240,804 216,700 240,804
Net result 381,233 372,145 317,511 301,534 276,865 229,106
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Net results
Favorable Scenario
Intermediate Scenario
Less Favorable Scenario
Year 2006 2.76 2.46 2.28
Year 2007 2.55 2.25 1.95
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Net results
Yes,
the benefits compensate the investment made by public
institutions
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Economic Impact
Input Output Metodology
Measure the capacity of generating benefits by the organization of an event
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2006 2007MFE IE LFE MFE IE LFE
Direct Effects
1,028.27 964.55 923.90 1,099.10 1,028.49 956.06
Indirect Effects
447.26 418.44 399.83 474.75 442.52 409.49
Induced Effects
1,258.74 1,136.95 1,135.25 1,353.48 1,269.89 1,184.16
Total Effects
2,734.27 2,519.94 2,458.98 2,927.33 2,740.90 2,549.71
(Thousands euros)
Economic Impact
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Impact distributionamong sectors
TIO Sectors Cat 2001 Total %
Manufactured Products 16.73Commerce 11.34Hotel Management 32.94Real Estate and Entrepreneurial Services 17.26Transports and Communications 6.61Others 15.12Total 100.00
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Economic Impact
Simple multiplier 1.43
Large multiplier 2.66
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Conclusions
To cover the event expenses public funding is needed
Why should public institutions support these events?
Economically feasible generating a high yield of 250%
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Conclusions
The events organized directly by UdL represent:
10% of total events in the city
11-13% of total attendees at meetings of Lleida
16-18% of total economic impact of business tourism of the city
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Conclusions
Events organizes by UdL are more numerous than meetings organized by other actors in the city
The economic impact is higher also because the duration is longer
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Conclusions
This paper may serve as a decision tool for local governments to decide to invest or not to invest in events organized by UdL
The results could be extrapolative to other events organized by other actors as Universidade Lusíada