1

Investigating International

Business Events Delegate

Spending Patterns in Malaysia

2

Introduction

To investigate international business events delegate

spending patterns in Malaysia

To determine the economic value for business events in

Malaysia.

3

Business Tourism Supply Chain

Business Events Tourism (Leisure) Hospitality Supply Chain Engaged

Hotels

Restaurants

Attractions

Retail

Tours

Transportation

Food Services

Other Entities Engaged for Business Events

Destination

Management

Companies

Ground transportation

Tours

Team building

Social programs

Exhibition Management

Companies

Stand building

Drayage

Storage

Furniture rental

Equipment rental

Cleaning

Event Marketing

Exhibition halls

Event Management

Companies

Entertainment

Decoration

Costumes

Props

Graphic designers

Lighting

Sound

Production

Rigging

Special effects

Professional Congress Organizers

Registration

Services

Audiovisual

Services

Catering

Florists

IT

Interpreters

Shipping

Speakers

Security

Electrical

Telecom / internet

Sponsor

development

Credentials

Printing

Signage

Photography

Videography

Teleconferencing

Convention centres

Venues

Job Opportunities

4

Economic Impact Assessment

Business

Events

Industry

• Sales

• Profits

• Jobs

• Tax revenues

• Income

• Employment

Opportunities

Lodging Restaurants Transportation Entertainment Retail trade

5

Economic System of Tourism

(2)

Purchases &

Investment

Employment

Personal

Income

Employment

Personal

Income

Tax & Fees,

Government

Services

(1) (4) (5)

Purchases

Tourist Leisure &

Business

Service Provider

Employment (A) Employees (C)

Travel & Tourism

Suppliers

Government Travel & Tourism

Services (5) Tax & Fees

Purchases

Government

Services

(3) Purchases &

Investment &

Taxes & Fees

Employees (B)

6

Model of the Economic Impacts

of Tourism

Income from Tourism Received by

Suppliers

(Indirect Impact)

Tourist’s Spending

Income from Tourism Received by

Enterprises

(Direct Impact)

Purchases

Income from Tourism Received by

Suppliers and Their Support

(Purchases, Employment & Wages)

(Induced Impact)

Induced Income from

Tourism

Tax

Revenues

Received by

Local

Authority

(e.g.

Municipality)

Employment

& Wages

Purchases Employment

& Wages

Direct, Indirect, Induced and Multiplier Effect

7

Methodology

Approach

Quantitative

Self-Administered

On-site

Survey

Travel/Planning information

Expenditure Pattern

Experience

Sampling

2015 international and regional conference /

exhibition

Foreign participants

Conference delegates and Exhibition Buyers /

Visitors

Non-probability convenience sampling

Most events in Kuala Lumpur, Selangor, Sarawak, Sabah,

Penang

Data Analysis

SPSS 17.0.1

Money Generation Model

8

Findings

9

Conference Delegates

1,917 samples

25 events

5 days

25% US$2,550

10

Conference Delegates

31%

23% 23%

8%

6%

4%

2% 1% 1% 1%

11

Exhibition Buyers

183 samples

7 events

6 days

18% US$2,374

12

32%

26% 11%

11%

7%

5%

4% 2%

1% 1%

Exhibition Buyers

13

Money Generation Model (MGM)

Visits from foreign

delegate

Spending per visit

Regional Economic Multiplier

Economic Impact

14

Direct, Indirect & Induced

Economic Impact Computation – Direct Economic Impact

– Indirect Economic Impact

– Induced Economic Impact

= SPSS

Average 1 ×

Total Number of Foreign Population:

Delegates/Buyers2

= Matrix Algebra of Direct Economic Impact and Multipliers 3

=

Direct &

Indirect

Economic

Impact

× Induced Ratio 4

(Value Added/Total Output) + (Income/Total Output)

15

Full Time Equivalent (FTE)

Computation

Employee 5

Compensation ÷ Total Output 6 =

Ratio of Employee

Compensation per

Output

Ratio of Employee

Compensation per

Output

× Number of Employees

7 = Total Number of FTE

16

Economic Multiplier Study

Segments

& Surveys

Micro Areas of Expenditure (Spending Patterns) Economic

Multipliers

Average

Segment

Multipliers

Conferences:

Delegates

Survey

Conference Registration Fee(s)

Cost of International Airfare (if Malaysian Airlines or Air Asia is

used)

Cost of Domestic Airfare

Cost of Hotel/Accommodation and Other Logging Services

Cost of Local/Cultural Tours (including entrance fees for

attractions)

Spending on Local Transportation (rails, public busses & taxis etc.)

Spending on Food and Beverage

Spending on Shopping (purchase of personal goods, gifts,

souvenirs etc.)

Spending on Leisure Activities (pubs, cinemas, adventure sports)

Other Spending (such as private car hires, personal guide etc.)

2.2

2.1

2.1

1.7

1.6

2.1

2.4

2.6

1.6

2.4

2.0

Exhibitions:

Buyers Survey

• Exhibition Registration Fee(s) (including workshops)

• Cost of International Airfare (if Malaysian Airlines or Air Asia is

used)

• Cost of Domestic Airfare

• Cost of Hotel/Accommodation and Other Logging Services

• Cost of Local/Cultural Tours (including entrance fees for

attractions)

• Spending on Local Transportation (trains, public busses & taxis

etc.)

• Spending on Food and Beverage

• Spending on Shopping

• Spending on Leisure Activities (e.g. pubs, cinemas, adventure

sports)

• Other Spending (such as private car hires, personal guide etc.)

2.5

1.8

1.8

1.7

1.5

1.9

2.3

2.5

1.5

2.4

2.1

Overall 2.1

17

Findings

US$246 million

• direct Economic Value

US$ 498 million

• total economic impact (direct, indirect & induced).

US$ 21 million

• tax revenue (direct, indirect & induced

US$ 2000

• One FTE (full time equivalent)

238,641

• Job Creation

18

Future Research

Government advocacy

Industry support

Based on events supported by MyCEB only

Incentive travel and organisers expenditure not included in the calculation

19

Malaysia Convention & Exhibition Bureau (868264-K)

Suite 22.3, Level 22, Menara IMC

8 Jalan Sultan Ismail

50250 Kuala Lumpur

Malaysia

T +603 2034 2090

F +603 2034 2091

info@myceb.com.my

www.myceb.com.my

Thank You

Not to be published or distributed – MyCEB intellectual property