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