Post on 02-Dec-2014
description
The Economic Significance of
Meetings to MexicoUNWTO Model
Purpose of the Study
• Show meetings is an economic engine beyond tourism activity
• Identify the importance of meetings to tourism
• Provide a basis for on-going benchmarking
• Justify investment in the meeting industry by destinations or Governments
Definition of a Meeting
• Minimum of 10 participants, 4 hours in length, held in a contracted venue (LOCAL, DOMESTIC AND INTERNATIONAL)
• Includes: conventions/conferences, trade shows/exhibitions, incentive events, corporate/business meetings
• Excludes: consumer shows, social events, sports events, etc.
Survey Audience Sample Completed Response Rate
Primary Sample:
Venue Managers 314 66 21%
Mexico Meeting Organizers 88 31 35%
OCVs 58 25 43%
Supplemental Sample:
US Meeting Organizers 10,445 266 3%
Total 388
Research: Primary and Secondary
Challenge: Culture of Sharing Information
Venue Type Events %Lodging facility 159,900 81%
Purpose-built 25,700 13%
Other 11,800 6%
197,400 100%
Meetings Volume by Venue Type
Challenge: Balance in infrastructure
Meeting Type Events %Corporate / Business 131,000 66%Convention / Conference 28,000 14%Incentive 6,300 3%Trade Show / Exhibition 4,400 2%Other 27,700 14%
197,400 100%
Meetings Volume by Type
Challenge: Match between destinations and market
Room Nights Generated by Meetings
Meeting Type Room Nights %
Corporate / Business 11.0 million 46%
Convention / Conference 6.4 million 26%
Trade Show / Exhibition 4.8 million 20%
Incentive 1.4 million 6%
Other 0.7 million 3%
24.3 million 100%
Challenge: Getting hoteliers on board
Meeting Type Participants %
Corporate / Business 10.2 million 44%
Trade / Exhibition 5.4 million 23%
Convention / Conference 5.1 million 22%
Incentive 0.6 million 2%
Other 1.9 million 8%
23.1 million 100%
Participant Volume by Meeting Type
Challenge: Demonstrating value of Association Market
Meeting Type Local Domestic Foreign Total
Corporate / Business 5.4 million 4.6 million 0.2 million 10.2 million
Trade / Exhibition 2.4 million 2.9 million 0.08 million 5.4 million
Convention / Conference 2.0 million 2.9 million 0.2 million 5.1 million
Incentive 0.02 million 0.2 million 0.4 million 0.6 million
Other 1.5 million 0.4 million 0.01 million 1.9 million
11.3 million 10.9 million 0.8 million 23.1 million
49% 47% 4% 100%
Meetings Participants by Origin
51% of participants traveled to meetings.
Challenge: so why so much investment?
Category Amount %
Participants $10.5 billion 58%
Net Production 5.1 billion 28%
Other 2.5 billion 14%
Total Direct Spending $18.1 billion 100%
Meetings Direct Expenditures
Challenge: Too good to be true
Meetings Share of Tourism =
$8.7 billion (9% of Tourism)
Meetings Relative to Tourism
Tourism*
$100.7 billion
Meeting
$18.1 billion
Learning: This is not a “segment” of Tourism
Meetings Share of Tourism =
$8.7 billion (9% of Tourism)
Meetings Relative to Tourism
Tourism*
$100.7 billion
Meeting
$18.1 billion
“Unrelated” to Tourism = $9.4
billion
Challenge: Convincing Politicians of its Benefit
Foreign Participants
• 830,000 foreign attendees to meetings
• Foreign attendees accounted for 7% of travel participants and 11% of spending by travel participants
• Foreign attendees spent an average of $1,092 per meeting for travel, registration, and other expenses
Mexico compared to US
Category Mexico USYear of Study 2010 2009Meetings 197,400 1,790,800Participants 23.1 million 204.7 millionRoom Nights 24.3 million 250.0 millionDirect Spending $18.1 billion $263.4 billionTourism Output $100.7 billion $708.3 billion
Learning: We are not so bad!
Indication of Direct Economic Contribution:
Industry Output $18.1 billion
Contribution to GDP* $12.1 billion
Employment* 441,000
Labor Income* $2.7 billion
*Note: based on ratios from third-party sources
The Great Numbers (Direct)
Challenge: How and What should we Communicate ?
*Indication of Total (Direct, Indirect, Induced) Economic Contribution:
Industry Output $32.5 billion
Contribution to GDP $25.1 billion
Employment 784,000
Labor Income $4.7 billion
*Note: Based on multipliers from third-party sources
What a contribution !
Next Steps
• Development of model for future updates
• Potential for continual data collection and benchmarking
• Potential to develop the significance of meetings at the state, local, and individual event level
Mexico is one of the top ten tourist destinations in the world:
Tourism represents 9% of the GDP.
Third largest source of foreign currency earnings.
More than 2.5 millions direct jobs & 7.5 million indirect jobs
6.3 millions cruise visitors
Where is Mexico in Tourism?
Place Country TouristsArrivals
2010(Millions)
1 Francia 76.8
2 EE.UU. 59.7
3 China 55.7
4 España 52.7
5 Italia 43.6
…….
10 México 22.4
Source: UNWTO, 2011
1st
…10th
18
22.4 millions visitors in 2010
51.3 millions Border crossers
Sun and Beach Destination ?
19
20
64% Mexico’s Visitors come to Sun and Beach Destinations !
Los CabosMazatlán
Acapulco
Ixtapa
Huatulco
Cancún/ Riviera Maya
Puerto Vallarta /Riviera Nayarit
21
Lead Destinations for Large Congresses
Los CabosMazatlán
Acapulco
Ixtapa
Huatulco
Cancún/ Riviera Maya
Mexico moved up in the ICCA ranking from 27º to 22º place with 140
congresses in 2010
Puerto Vallarta /Riviera Nayarit
Mexico City
Monterrey
Guadalajara
22
Los CabosMazatlán
Acapulco
Ixtapa
Huatulco
Cancún/ Riviera Maya
Puerto Vallarta /Riviera Nayarit
Mexico City
Monterrey
Guadalajara
Tampico
Zacatecas
Querétaro
Mérida
Puebla
Chihuahua
Morelia
Veracruz
New destinations for Meetings
Cuernavaca
23
Los CabosMazatlán
Acapulco
Ixtapa
Huatulco
Cancún/ Riviera Maya
ECONOMIC BENEFITS FROM MEETINGS AND EVENTS INDUSTRY ARE
BROAD -BASED
Puerto Vallarta /Riviera Nayarit Mexico City
Monterrey
Guadalajara
Tampico
Zacatecas
Querétaro
Mérida
Puebla
Chihuahua
Morelia
Veracruz
Building right now!
Campeche
Tijuana
Oaxaca
Meetings Industry Overall Benefits to Mexico
City wide meetings and UN summits have impacted local and regional economies such as:
World Water Forum Mexico City 2006
Universal Forum of Cultures Monterrey 2007
XVII AIDS Conference Mexico City 2008
UN World Wilderness Forum Merida 2009
ITU Guadalajara 2010
COP 16 (legacy in sustainablebusiness culture, recycling and eolic energy infrastructure). Cancun 2010
24
We have to be able to measure education, innovation, knowledge shared and Legacy
Important Expansion in CVBs
25
Conventions and Visitors Bureau
0
10
20
30
40
50
60
70
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
27
56100%
Meeting Space has grown by 148%
26
Venues
0
10
20
30
40
50
60
70
80
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
545,335.9 m2
44
868,497.25 m2
67
Major Convention Centers
27 27
CENTRO DE CONVENCIONES Mazatlán
PALACIO DE CONVENCIONES Zacatecas