1. Krzysztof Borodako, Jadwiga Berbeka,Agata Niemczyk, Renata SewerynInfluence of the meetings industryon the economy of Krakw

2. Krzysztof Borodako, Jadwiga Berbeka,Agata Niemczyk, Renata SewerynInfluence of the meetings industryon the economy of KrakwA report on the implementation of a projectSteering the meetings industry in Krakw: appraisaland monitoring of the economic influence of the meetings industryon Krakw economy, using good practice from Switzerlandwww.krakowimpact.plFoundation of the Cracow University of EconomicsKrakw 2014 3. TABLE OF CONTENTS5 1. Introduction7 2. Project team9 3. Executive summary12 4. Previous analyses of the impact of the business, tourism and meetings sectoron the economy of a country, region or city19 5. Methodology of the research conducted19 5.1. Research area, scope and objectives19 5.2. Study timetable20 5.3. Selection of the samples for the pilot and main studies21 5.4. The questionnaires and methodology of analysis25 5.5. Limitations associated with the studies conducted27 6. Size and structure of the meetings industry in Krakw in 2008201327 6.1. Preliminary remarks27 6.2. The number of events28 6.3. Structure of events30 6.4. Seasonality of events in the meetings industry market30 6.5. Duration of meetings and events33 6.6. Number of participants34 7. Value of the expenditure of those on the demand side of the meetings industryin Krakw in 201341 8. Impact of the meetings industry on the economy of Krakw in 201341 8.1. Share of the meetings industry in selected groups forming part of the economy of Krakw42 8.2. Impact of the meetings industry on Krakws GDP43 8.3. Impact of the meetings industry on employment in the economy of Krakw45 8.4. Impact of the meetings industry on the economy of Krakw in the realm of taxation47 8.5. Impact of the meetings industry on the economy of Krakw in terms of salaries49 9. Recommendations concerning the acquisition of events53 10. Summary55 11. Bibliography57 List of figures58 List of tables59 Acknowledgements62 Definitions related to the meetings industry 4. The aim of the project is to definethe impact of the meetings industryon the economy of Krakw. 5. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 51. INTRODUCTIONThe question of assessing the impact of tourism on theeconomy is very important, and has been tackled in-creasinglyoften in recent years. Both economists andpoliticians want to receive relevant information ex-pressedin precise numbers. This comes as no surprisein the days when every realm of life is quantified.In the case of tourism, the process of measurement ismore difficult than in the case of other sectors, one of thereasons being the fact that tourism is not a separate itemin the Classification of Activities statistics. Furthermoreits impact is of a multi-aspect nature since besides thedirect impact we also deal with indirect and inducedimpact. Moreover, the effects are subject to a time delay.All these circumstances make any measurement highlycomplex.The goal of the project, to define the impact of the meet-ingsindustry (also referred to as the meeting industry)on the economy of Krakw, has already been explainedin the title of the report. Two types of difficulty in addi-tionto the ones mentioned above had already becomeobvious at the outset of the project. First, the goal is toestimate the impact of only the selected type of tourismon the economy, therefore it is necessary to abstract onlythat element that stems from the meetings industry fromthe comprehensive impact of tourism. Secondly, projectsthat concern the impact of business tourism are as a ruleconducted on a macro scale, which means the scale of acountry or possibly a region, and in this project, the studyconcerns the Municipality of Krakw, therefore there areno standards that one could fall back on.Taking the above into account, one immediately noticeswhat a huge challenge the preparation of an appropriatestudy methodology is. A literature survey, especiallyworld literature, returns works devoted to the subjectin question, yet unfortunately, the theoretical ones arehighly general and can make hardly any contributionto the design of the studies, while the ones that pres-entthe results of research do not present their specificmethodological assumptions and solutions and includeno more than a general introduction plus a presentationof the end results.The team made use of the expert support of the Swisspartners. Although they have great experience in con-ductingresearch, they have not actually conducted anycalculations analogous to those required in this study.Thus, the project also posed a major research challengefor them.It is a necessary condition for obtaining correct resultsthat thorough empirical data is collected. Two furtherfactors emerge as barriers in this area, this time relat-edto the entities operating on the supply side of thebusiness tourism market. The first is their eagerness toshare their private data, and the second is the time thatindividual businesses are ready to devote to the exercise.The project lasted for nearly 3 years, and consisted of anumber of stages.The first stage comprised an extensive literature sur-vey,especially on foreign literature. The second stageidentified the basic scope of the research in subjective,material and temporal terms. Terminological issues weredecided, notably business tourism (turystyka biznesowa)and the meetings industry (przemys spotka). Althoughthe authors pointed out the differences between theabove-mentioned categories, this report uses them in-terchangeablyfor stylistic purposes.A draft plan for the implementation of the project wasprepared. To do this an investigation was carried outon the meetings industry market in Krakw which usedsecondary data held by the Statistical Office in Krakwand other bodies. The staff of the Statistical Office werealso consulted on many aspects relating to the contentof the research.Pilot surveys were designed and conducted. The maingoal was to develop proper tools for measurement, thatis, questionnaires. The plural is used on purpose, as fivedifferent questionnaires were developed for variousgroups of population surveyed.The following stage was an analysis of the data obtained,assessment of the questionnaires from the pilot phase,and modification of those questionnaires. The tools thatwere later used in the study proper were developed as aresult of this work. The surveys involved were designedwith great diligence and lasted for nearly a year so thatthey could get information on the regular patterns re- 6. lated to the seasonality of demand in business tourism.The first phase took place in the autumn and winter of2013, and the second in the spring of 2014. The surveyswere only carried out with businesses that gave theirconsent and only on the premises of the facilities used. Inaddition to the above there were data from the databaseof the Poland Convention Bureau of the Polish TouristOrganisation (PCB POT), which were acquired throughvoluntary registration of events by their organisers and/or operators.One needs to emphasise clearly that the quality of theresults obtained is closely related to the quality of thedata obtained.The team is conscious of the responsibility they havein relation to the way they have carried out the project.This is because the information obtained will be usedby various bodies and will also become a hallmark ofKrakw and will carry specific promotional value. Thatis why due diligence was paid to conducting the entireproject in the best manner possible.The project is focused on the impact of the meetingsindustry on the citys economy. It does not account forvarious elements of the results, notably the knowledgeand competence imbued, the results achieved by par-ticipants,and organiser networking developed throughbusiness meetings, structural effects, and image-relatedeffects. Their quantification is even harder, yet this canbe considered a recommended topic for future studiesand investigations.The report consists of 15 sections. It starts with an in-troduction,which is followed by a presentation of theproject team. The first study-related section (and thethird in the overall order) is the Executive summary. Thefollowing section is a summary review of the literatureon the impact of business tourism on the economy. Thefifth section contains a discussion of the methodology ofthe studies and analyses that have already been carriedout. The sixth chapter discusses analyses of the volumeand structure of the meetings industry in Krakw over theperiod 20082013. The seventh chapter presents the valueof expenditure by participants in the meetings industry inKrakw: this is the key impact on the citys economy. Theeighth presents the most important results of the studies,defining the impact of the meetings industry on Krakwseconomy. The ninth section covers recommendations con-cerningthe acquisition of events by the city. The followingsection is a Summary of the results obtained. The 11thsection contains a Bibliography, followed by lists of figuresand tables and this is followed by acknowledgements ofall who have contributed to the project. The last elementof the report is an outline of the Definitions related tothe meetings industry that were approved for the project.The information obtainedwill be used by various bodiesand will also becomea hallmark of Krakwand will carry specificpromotional value. 7. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 72. PROJECT TEAMMUNICIPALITY OF KRAKW OFFICE OF THE MUNICIPALITY OF KRAKW,KRAKW CONVENTION BUREAU Magorzata Przygrska-Skowron General Manager of the Project Team Beata Pali (Manager to 13th January 2013) Wioletta Wolak Deputy General Manager of the Project Team Natalia Kulec-Gre Financial Manager of the Project Magorzata Ciesielska Public Procurement Manager Barbara Tumidajska Financial Settlements Coordinator Marcin Drobisz Monika Popioek Magdalena Jdrzejowska (to 31st May 2013) Anna Bbenek (to 31st December 2013)FOUNDATION OF THE KRAKW UNIVERSITY OF ECONOMICS Dr Krzysztof Borodako Scientific Coordinator of the Polish Workgroup Professor Jadwiga Berbeka Associate Professor Agata Niemczyk Associate Professor Renata SewerynKRAKW FESTIVAL OFFICE (KBF, OPERATOR OF ICE KRAKW) Agnieszka Ziemiaska KBF Coordinator Sara Lamik KBF Coordinator (to 30th June 2014) Lucyna Ferdek Financial Settlements Coordinator Joanna Mercik Tomasz Warcha Ryszard StrojnowskiUNIVERSITY OF APPLIED SCIENCES OF WESTERN SWITZERLAND VALAIS (HES-SO) Professor Roland Schegg Scientific Coordinator of the Swiss Workgroup Enrico Zuffi Professor Miriam Scaglione Dr Katarzyna Klimek Professor Marie-Franoise Perruchoud-Massy 8. As far as Poland is concerned,the studies conducted wereof a pioneering nature in their scope,specific topic, and planned effects. 9. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 93. EXECUTIVE SUMMARY1. As far as Poland is concerned, the studies conductedwere of a pioneering nature in their scope, specifictopic, and planned effects.2. The study made use of 5 questionnaires addressedto: business meetings and events organisers, opera-torsof facilities hosting such events, participants incongresses and other meetings of a similar character,visitors to trade fairs and exhibitions, and exhibitorsat fairs.3. The studies were based on a proprietary method-ologyfor estimating the economic impact of themeetings industry on the economy of the Munici-palityof Krakw based on data from the StatisticalOffice in Krakw and the Poland Convention Bureau(PCB), and also on an array of sources and materials ,including Rocznik Statystyczny Krakowa, Gospodarkaturystyczna w Krakowie, Badania ruchu turystyczne-gow Krakowie, the Krakowskie Konferencje NaukoweProgramme, Badania przemysu spotka w Krakowie,the Tourism Economics model (DMAI calculator pur-chasedfor the project), and other documents. Theprimary source of information for the project, how-ever,was provided by questionnaire-based studies.4. The project included pilot surveys on a sample of 16meetings of various types (congresses, conferences,seminars, symposiums, training sessions, workshopsand other corporate events; incentive events; andtrade fairs and exhibitions), covering 265 partici-pantsin these events. The main survey, in turn, wasconducted on a sample of 92 meetings classifiedaccording to the following criteria: type, numberof participants, sector, and scope (national/inter-national),covering the autumn and spring seasons(characteristic of the sector). The total number ofparticipants in the surveys, both on the demandand supply sides of the meetings industry in Krakw,amounted to 1294.5. The approach employed by the project focused onthe essence of business tourism, that is, the impact ofbusiness visits of people not residing locally. Howev-er,as local participants in the meetings also contrib-uteto the generation of expenditure (albeit to a smallextent), for example through participation in thecosts of the renting of premises and various externalservices, and also because of the project assump-tionsrelated to the study of the meetings industry,all participants in business meetings and events inKrakw in 2013, were taken into consideration.6. Beginning in 2009, a team representing the Founda-tionof the Krakw University of Economics (Founda-tionof UEK), which was based in the Chair of Tourismof the Krakw University of Economics (UEK), wascommissioned by the Krakw Convention Bureau(KCB) to carry out studies of the meetings industryin the city. The result of the studies made it possibleto obtain a picture of the volume and structure ofthe demand for group business tourism in Krakwwhich provided the starting point for the analysesin the project.7. In 20082012, the dominant type of group businessmeeting in Krakw was the corporate event whichaccounted for approximately half of all the events;only in 2013 did congresses and conferences takethe lead.8. International events accounted for 1/5 of all the busi-nessmeetings in 20082009 and in 2012, and evenmore than 1/4 in 2013. The largest share in this groupwas held by conferences/congresses.9. The distribution of events in Krakw during the yearwas quite typical for the meetings industry. Theywere concentrated in the periods March to June andSeptember to November.10. In 2013, more than 420,000 meeting and event par-ticipantsarrived in Krakw. Throughout nearly theentire period of the study (20082013) the mostnumerous group among them was that of touristscoming to trade fairs and exhibitions, although in2013 their share became equal to that of congressand conference participants.11. The results of studies conducted for the needs ofthe project made it possible to ascertain that partic-ipantsin congresses and other meetings of similarcharacter (i.e. congresses, conferences, seminars,symposiums, training sessions, workshops and oth- 10. 10 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakwer corporate events, and incentive events) allocatemost funds to fees for participation in the event (onaverage approximately PLN 730 per person), accom-modationduring the event (approximately PLN 390),shopping (approximately PLN 220), and food (ap-proximatelyPLN 160).12. Visitors to trade fairs and exhibitions spent the high-estaverage amounts on accommodation during theevent (close to PLN 240) and on shopping in shoppingmalls and shops (close to PLN 230). These partic-ipantsspend amounts that are only half of thoselisted above on food outside the site on which thefair takes place (close to PLN 115).13. The highest individual average expenditure amongexhibitors (people representing businesses at fairsand/or exhibitions or presenting their offer to thevisitors) is related to accommodation for the du-rationof the event (close to PLN 820) and before/after the event (close to PLN 580). Besides the above,there is a fairly high expenditure on shopping inshopping malls and shops (nearly PLN 310 per per-son),and amusement (pubs, nightclubs, etc. overPLN 220). In turn, an examination of the expendi-tureof businesses making their presentations atevents shows that the highest average expendi-tureis allocated to the Fair Handling Agency (onaverage nearly PLN 5500 per exhibitor), with theThe impact of the meetings indus-tryon the economy of Krakwwas assessed in four areas: GDP,employment, salaries, and taxes.fees charged by those cooperating in organisingthe event (in excess of PLN 4200) coming a closesecond.14. A comparison of the structure of expenditure inthree groups: participants of congresses and othermeetings of similar character, visitors to trade fairsand exhibitions, and exhibitors at fairs leads to theconclusion that the sums spent on accommodationfor the duration of the event are highest in all thegroups. Especially conspicuous is the expenditure onshopping in the group comprising business fairs andexhibition visitors (whose share is more than twiceas high as that in the other two groups studied) andalso the expenditure of participants in congressesand meetings of similar character on amusementand food (whose share in turn is half as much as inthe remaining groups of respondents).15. The impact of the meetings industry on the economyof Krakw was assessed in four areas: GDP, employ-ment,salaries, and taxes.16. The GDP was assessed through the use of the linearregression method using an ancillary (measurable)exogenic variable that remained strongly linked tothe GDP calculated for smaller administrative areasin the territorial division of the country, includingthe city of Krakw. 11. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 1117. The adjusted value of GDP for the meetings industrygroup in Krakw amounted to PLN 1,068,900,000 in2013.18. The share of the GDP produced by the meetings in-dustryin the GDP of the city of Krakw amounted to2.37% in 2013.19. The total full-time equivalent employment in theentire meetings industry in Krakw in 2013 was 8890.20. Having accounted for indirect and induced effects,the number of employees of the meetings industryin Krakw in 2013 was estimated to be a total of 12,214people.21. The share of total employment generated by themeetings industry compared to total employmentin Krakw amounted to 3.25% in 2013.22. The total value of taxes and other levies generatedand paid by the meetings industry in Krakw in 2013was estimated to be PLN 60,001,798.23. Accounting for the tourist multiplier for the meetingsindustry, the total value of taxes and levies paid tothe municipal treasury by businesses of the sector(natural and legal persons) in 2013 can be ascertainedto be PLN 89,606,314.24. The total value of taxes and levies generated by themeetings industry in 2013 accounted for 2.4% of therevenue of the Municipality of Krakw.25. The total gross value of salaries in the entire meet-ingsindustry in Krakw in 2013 was estimated to bePLN 188,751,330.26. Having accounted also for the indirect and inducedimpact, the comprehensive gross value of salaries inthe entire meetings industry in Krakw in 2013 wascalculated to be PLN 315,799,850.27. The share of total gross salaries generated by themeetings business in 2013 in the entire Krakw econ-omyamounted to 4.0% by value.Accounting for the tourist mul-tiplierfor the meetings industry,the total value of taxes and leviespaid to the municipal treasuryby businesses of the sector(natural and legal persons)in 2013 can be ascertained to bePLN 89,606,314. 12. 12 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw4. PREVIOUS ANALYSES OF THE IMPACTOF THE BUSINESS, TOURISM ANDMEETINGS SECTOR ON THE ECONOMY OFA COUNTRY, REGION OR CITYStudies conducted during the project concerned theidentification of analytical approaches related to theimpact of the business tourism and meetings industryon the economy of a country, region, or a city used indifferent areas of the world. The expansion of the scopeof searches for existing studies to such areas as regionsand countries was motivated by the lack of available lit-erature,whether books, articles or study reports. The pe-riodof economic crisis in the last decade resulted in theneed for an even more rational allocation of the limitedfunds and, in this way, in the seeking of ways to measurethe significance and impact of various types of businesson the development of a given area. For pragmatic rea-sons,a decided majority of the studies have so far beenconducted at a national or regional scale (for tourism),while studies at a metropolitan or local scale usuallyfocused on the so-called soft aspects of impact, that is onidentifying the previously unmeasurable aspects related,for example, to the image of an area, its social and/orcultural impact, prestige, etc. Some research approach-espresent in literature took the form of econometricmodels based on detailed statistical data available in agiven country. Confronted with Polish public statistics,such cases made it possible to see differences in thelevel of precision in the statistical data available in manycountries of the world. Having become familiar with themultiple research approaches available in the scientificliterature, we present a number of them in further detailin the report, discussing the principles behind them andtheir application in general terms.The first is the TREIM (Tourism Regional Economic Im-pactModel), which allows one to estimate the direct,indirect, and induced impact of tourism-related activityon the economy of the region in terms of GDP (gross do-mesticproduct), salaries, and employment. It assessesthe direct and full impact of this activity on the volumeof taxation on a federal, regional, and municipal scale.Moreover, TREIM makes it possible to limit the study toa household or an investment, which allows one to pickout the impact of the additional family revenue obtainedas a result of the operation of the tourist sector on thebusiness economy, and reflects the impact of changes inbusiness operation on investments. As the eagerness tospend the additional revenue depends on the economiccircumstances, this approach makes use of an equationthat accounts for a number of factors, including inter-estrate, inflation, unemployment rate, and currencyexchange rates. In the case of businesses, readiness toinvest is the result of numerous factors including thedemand envisaged for their products and the cost of newcapital. This model grants the user the possibility of gen-eratingan estimate of the current impact of tourism onthe economy as well as that in previous and future years.It was used for the Canadian economy and was adjustedto statistics available in that country. Within this model,the approach used is the TREIM Single-Region Simula-tionswhich makes a simulation of the impact of tour-ism-related activity in a region on that region and otherparts of the province taking the following into account:expenditure of visitors (simulation of the impact of ex-penditureon the region), expenditure in fields relatedto tourism (simulation of the impact of tourism-relatedactivity on the economy: retail sales, amusement and rec-reation,accommodation, restaurants), and expenditureon investments in tourism (simulation of the impact ofinvestment on one of the above-mentioned fields relatedto tourism) (TREIM, 2008).Another approach used in the tourism impact study isthe RIMS II (Regional Industrial Multiplier System), whichhelps to estimate the degree to which a one-off or lastingincrease of economic activity in a region will be producedby the industry operating in it. RIMS II provides the userwith five types of multipliers: multipliers of final demandfor production, salaries, and employment; and multipli-ersof the direct impact for salaries and employment.The model is based on a table of flows between branchesobtained from two sources of information: the Nationalinput-output table of the BEA (US Bureau of EconomicAnalyses) showing the input-output structure of nearly500 branches of US industry and registers on the regionaleconomy (Chang, 2001; Borgen and Cooke, 1990).The third of the models identified is the IMPLAN (IM-pactanalysis for PLANning economic impact model):a tool for the identification of the impact of tourism onthe regional economy of the State of Vermont. Its basicpurpose was to study the impact of tourist expenditureon the regions economy. The study included impactin the realm of changes in industrial output, changesin employment and income, and taxes. Data collectedfrom various sources questionnaires addressed to 13. The period of economic crisis in the lastdecade resulted in the need for an even morerational allocation of the limited funds and,in this way, in the seeking of ways to measurethe significance and impact of various types ofbusiness on the development of a given area. 14. 14 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakwall tourists and business tourists and available IMPLANdata (on employment, added value, production, institu-tionalinvestor demand, transfers between institutions,national structural matrices) were used to measurethe primary and secondary impact of the tourist indus-tryon the economy. The assessment of the status andsignificance of the tourist industry for the economy ofthe State of Vermont made use of input-output (flowsbetween branches) analysis. This analysis makes use ofthree economic effects to study the impact on the econ-omy:direct (referring to changes in production linkedto changes in demand for the product), indirect (relatedto secondary impacts resulting from the changing needsof industries linked to tourism), and induced (triggeredby changes in households related to the additional em-ploymentgenerated by the direct and indirect effects)(Bonn and Harrington, 2008; Alward and Lindall, 1996;Borgen and Cooke, 1990).A fourth, entirely different concept worth quoting here isthe approach developed under the auspices of the WTTC.In cooperation with Oxford Economics (OE), this organ-isationstudies the impact of tourism on the economy ofthe country and its employment both on a global scaleand at that of individual regions (in 2013, studies wereconducted in 24 regions) and states (184). The WTTCidentifies the direct effects of this influence, recognisingthat the overall contribution of tourism to the economyof a given country is broader, as besides the direct im-pactsit also includes indirect and induced ones (in linewith the idea of multiplier effects). WTTC believes thatthe tourist economy refers both to strictly tourist servic-es(e.g. accommodation, transport) and to the providersof goods and services directly connected to the handlingof tourist traffic (e.g. vehicles, fuel). Moreover, the WTTCalso includes investments related to tourism, public ex-penditure,and the export of goods as part of the touristeconomy. The data acquired from various countries arecoherent so that they can be directly compared (WTTC,2013).The project which produced this report is based on theinvestigation of the significance of the meeting sectorfor the economy of Krakw and was conducted in coop-erationwith a Swiss partner. The University of AppliedSciences of Western Switzerland Valais (HES-SO) carriedout regional studies which involved the measurementof the significance of the University for the economy ofthe canton. The main author of this approach (the fifthof those discussed here) was Professor Georges Fischer.In his approach Professor Fischer pointed to the signif-icanceof dimensions other than the economic, notablyinfrastructural, networking, competence, and imageeffects. It was proposed that the impact of a given ac-tivity(in this case educational and research services) isreferred to various types of distribution effects at threelevels of analysis: the purchasing power or paymentsmade, the quality of goods, and the consumption of theservices provided (Fischer, 2001). Although providingthe foundation for the analysis, the first level is not suf-ficientfor a proper study of the impact of a given realmon the economy of a region. That is why it is necessaryto move from financial flows to the second level, namelythat of the flow of goods. In the third step (i.e. on thethird level) of the analysis, the question is posed whichregion in a given state makes the most and which theleast benefit from the services provided by the giventype of business. This concept also accounts for themultiplier which points to the indirect and induced im-pact.As mentioned earlier in the paragraph, while thisapproach may be interesting, it is primarily adapted toSwiss circumstances, and secondly, it refers to a differenttype of activity. Moreover, it concerns a specific subjecttogether with its impact on the economy of a canton, andnot an extensive cluster of stakeholders which make upa given sector.The sixth and seventh approaches are similar studiescommissioned and branded by a global organisation, theMeeting Professional International foundation, of twocountries: Canada (known as the Canadian EconomicImpact Study CEIS) and the United Kingdom (knownunder the name of the United Kingdom Economic ImpactStudy UKEIS). The British project, discussed brieflybelow, is the most recent of these. The Economic Impactof the UK Meeting & Event Industry study conducted bythe Leeds Metropolitan University and commissioned bythe Meeting Professionals International (MPI) foundationmade use of the experienced gathered in the previousnational studies: National Business Events Study. Australia (2005);conducted by Deery, Jago, Fredline, and Dwyer forSTCRC The Economic Contribution of Meetings Activity inCanada (2008); conducted by Maritz Research forMPI Canada 15. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 15 The Economic Significance of Meetings to the USEconomy (2011) conducted by PWC on behalf of theConvention Industry Council The Economic Significance of Meetings to Mexico(2011), conducted by PWC on behalf of Tourism Mexico The Economic Contribution of Meeting Activity inDenmark (2012), conducted by Visit Denmark.Resorting to the data acquired from various sources,the research team developed a profile of the meetingsindustry encompassing the organisational activity, thevolume of demand for events, and the expenditure pro-file.The last category was classified according to keycategories of expenditure as well as the main segmentsof the market concerned (i.e. fairs, incentive events, andconferences). A preliminary study based on an onlinequestionnaire addressed to 5 groups of stakeholderson the demand (meeting participants and exhibitors)and supply (meetings, organisers, site managers, andorganisations managing meeting venues) sides was con-ducted.On (panel) questionnaire surveys, the LeedsMetropolitan University collaborated with Maximiles, acompany capable of reaching over 2.4 million qualifiedparticipants, including 950,000 in the UK alone. Each ofthe respondent groups provided the researchers with acharacteristic range of information: meetings, organisers individual types of meetings(conference, fair, exhibition, or incentive event), to-talnumber of delegates, the number of delegatesbroken down by region/country of origin, durationof meeting, expenditure (facility rental, food anddrink, equipment, administration, advertising, key-notespeaker, insurance) and revenues (registrationfees, sponsoring, government, and fees from pro-viders) venue operators number of meetings organisedat a venue, number of meetings broken down intovarious categories (conference or exhibition; small,medium-sized, large), overall number of delegates(broken down into types of meeting), number of seats,venue type public administration and NGOs expenditure ofthese bodies on supporting the meetings industry(advertising and promotion, subsidies), budgetarydivisions and sources of revenue, changes in expend-iturein recent years participants (and their friends and families) num-berof nights per meeting, number of additionalnights for private/professional reasons, number offriends/family members travelling with the delegates,total expenditure for participation in meetings exhibitors (and their friends and families) numberof nights per meeting, number of additional nights,meeting-related expenditure (venue rental, cost ofconstruction of an exhibition unit/cubicle, equip-mentrental, electricity, advertisements, employmentof temporary staff, exhibition materials, transport),other expenditure on products related to tourism (ac-commodation,shopping, transport, food and drinks,amusement, excursions).The research team used publicly available statisticaldata and questionnaire data to draw up an expandedtourism satellite account for the country, called themeeting and tourism satellite account (MTSA) for theneeds of the project. It was used for the estimation ofthe market sector gross value added (MGVA) with the useof a specific methodology and approach to the concept.The researchers estimated how much of the result de-pendedon meetings, i.e. what percentage of the results(output) individuals and/or organisations purchasedfor the purposes of running or attending meetings and/or conferences. The demand side was studied throughextended questionnaires whose results were presentedin the report in the form of a participant profile. Thisprofile also made it possible to estimate the purchasesof each good by conference participants and personsaccompanying them.It is also worth mentioning the studies conducted withconsiderable energy in the United States by Pricewater-houseCoopers(PwC) which can provide a certain touch-stonefor national studies. Yet, as the methodologicalpart of the report from the studies is not extensive andour report is limited in length, the approach is no morethan mentioned here (more: The Economic Significanceof Meetings to the US Economy, 2011).The last, yet not the least, of the approaches is the onedeveloped as a result of cooperation between a globalorganisation Destination Marketing Association Interna- 16. 16 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakwtional (DMAI) and Oxford Economics consulting company.It allowed the development of a research approach usedin more than 80 US congress bureaux (cities/regions) andin a number of European countries, Switzerland includ-ed.The implementability of the approach was increasedthanks to the creation of an IT tool in the form of a calcu-latorthat makes it possible to investigate the size of themeetings industry (three main sectors) on the basis ofthe aggregated economic impact of all the events carriedout within the given area, and entered into the calculator.The task seems downright backbreaking, yet the tool givesaccess to the value of the impact multiplier adjusted toa given city. In the case of Krakw, this aspect of the toolproved of key importance due to the lack of statistical andregional studies for the city related to the tables of flowsbetween the branches, and also due to the attempts atusing good practice from Switzerland (project partner).The literature survey (publications in international jour-nals,books, and recent reports) conducted as part ofthe project made it possible to identify a number of ap-proachesto the question of how to study the impact oftourism on the economy. As was mentioned in the intro-ductionto the chapter, they are quite varied in character:both objectively in terms of the limitations of the studiescarried out, and also in response to the preferences ofthe research teams and the expectations of the recipientsof the results obtained. As a result, several research ap-proaches(sometimes also called models) were identified,of which a handful were selected for further evaluationfrom the point of view of the objectives and specific traitsof this project. The following criteria were assumed inorder to evaluate each of the approaches.1. What was the preferred (dominant) level of use ofthe approach?2. What countries have been identified using the ap-proach?3. Was the approach used by a municipal, regional, ornational convention bureau (CB Convention Bureauor CVB Convention & Visitors Bureau)?4. Was the approach used on an international scale(beyond the borders of a single country)?5. What organisation was responsible for the imple-mentationof the approach?6. What type(s) of categories were investigated (direct,indirect, induced)?7. Was the approach developed implemented in theform of a calculator (software)?8. Was the approach implemented in/by Switzerland(project partner)?9. Can the approach be adjusted to the real-life contextof Krakw (a Polish city and regional capital) withinthe timeframe of the project?10. Can the approach be adjusted to the real-life contextof Krakw (a Polish city and regional capital) withinthe budget of the project?11. Is it possible to compare the significance of the re-sultsof the meetings industry (business tourism) inKrakw with other cities in the world?12. Is it probable that this approach would be put intopractice in other Polish cities in the coming 3 to 5years?13. Is it probable that this approach would be imple-mentedat a national level in Poland in the coming3 to 5 years?A brief comparison of the approaches discussed is con-tainedin table 1. 17. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 17TABLE 1. ASSESSMENT AND SYNTHETIC COMPARISON OF SELECTED METHODOLOGIES OF INVESTI-GATINGTHE ECONOMIC IMPACT OF BUSINESS TOURISM (THE MEETINGS INDUSTRY) ON A SPECIFICAREACriterion Approach TREIM RIMS II IMPLAN Fischer WTTC DMAI MPI PwC1. Dominant level of use Region Region Region Region Country Region,CityCountry Country2. Countries applying Canada US US Switzerland Global Global Canada,Denmark,UKUS, Mexico3. Used by conventionbureauno data no data no data No no data >80 globally no data no data4. Used on an internationalscaleNo No No No Yes Yes Yes Yes5. Organisation responsiblefor implementationMinistryof TourismandCultureBureau ofEconomicAnalysisUSDAForestServiceUniversity OxfordEconomicsfor WTTCOxfordEconomicsfor DMAIMPIFoundationPrice-waterhouse-Coopers USfor CIC6. Impact categories in-vestigated(direct, indirect,induced)Yes Yes Yes Yes Yes Yes Yes Yes7. Calculator available No No No No No Yes No No8. Used in Switzerland No No No Yes No Yes No No9. Opportunity to adapt toKrakw project timeframeLow Low Low High Low High High High10. Opportunity to adapt toKrakw project budgetLow Low Low High Low High Average Low11. Possibility to compareresults with other cities in theworldLow Low Low Low Low High Average Low12. Probable implementationof this approach in otherPolish citiesLow Low Low Low Low High Average Average13. Probable implementationof this approach in Poland(at the national level)Low Low Low Low Average High High LowSource: Own study. 18. How much and on whatdo participants in businessmeetings spend while stayingin Krakw? 19. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 195. METHODOLOGY OF THE RESEARCHCONDUCTED5.1. RESEARCH AREA, SCOPE AND OBJECTIVESThe research conducted for the project was designed tofit into the administrative borders of the city of Krakw.Its material scope concerned economic aspects linked tothe impact of the meetings industry (business tourism:with the distinction between congress and corporatetourism, and trade fairs and exhibitions) on the economyof the city, with reference to its classical elements, thatis the value of the GDP, employment, salaries, and taxesobtained by the city.The basic activity related to the preparation and imple-mentationof any scientific study is the formulation of theresearch problem. The objective of the study conductedas part of this project was:to define the impact of the meetings industryon the economy of KrakwThus formulated, the goal of the study laid the founda-tionsfor asking the following research questions:1. How long do tourists stay in Krakw because of busi-nessmeetings (this concerns the stay strictly relatedto the event and the stay around the dates of theevent: both before and after)?2. Do business tourists stay in Krakw on their ownor with an accompanying person/accompanyingpersons?3. How much do participants in business meetingsspend while staying in Krakw, and what on?4. Where do participants in business meetings held inKrakw sleep?5. How many days do group business events in Krakwlast?6. Are the costs of the organisers, agents, and oper-atorsof the venues in which business meetings inKrakw are held aligned with the expenditure ofthe participants?7. How many people work providing services for busi-nessevents in Krakw?8. What is the GDP of the meetings industry in Krakw?9. What stream of taxes and other revenue reachesthe citys treasury thanks to the meetings industry?10. What is the estimated total of the salaries in themeetings industry in Krakw?5.2. STUDY TIMETABLEProject implementation was envisaged over a period of30 months and comprised four task packages. The firstpackage covered primarily an analysis of Polish andinternational literature concerning the questions envis-agedin the project and the identification of the availablestatistical data related to the selected types of businessin the Krakw economy, tourist traffic (tourist economy)and meetings sector. The Swiss partner was then consult-edon the information collected to see whether it met theintended objectives of the project. The second task pack-ageconsisted of designing the preliminary methodologyof analysis, organisation of the training and consultationworkshops, and preparation of the assumptions for thepilot surveys (study tools and sample selection). Thethird package consisted in an external company (not partof the project team) carrying out a pilot questionnairestudy. The collective source data were then analysed andinvestigated further, and became the working materialexamined during workshops with the Swiss partner.The proposed amendments were incorporated into themethodology of the study, and the modified question-naireswere put out to consultation with representativesof the Krakw meetings industry. The entire fourth taskpackage was devoted to the main questionnaire survey(also carried out by a body external to the project team),analyses related thereto, consultations with experts fromselected fields, and the development of the final results.The last task package was of a horizontal nature, andconcerned the planned marketing activities covering thepreparation of content for the first and second workshop,a study visit in Switzerland for representatives of theKrakw sector, a visit by foreign journalists in Krakwfocused on becoming familiar with the infrastructureand strong points of the city, and getting to know theKrakw businesses that provide services at various typesof business meetings. 20. 20 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw5.3. SELECTION OF THE SAMPLES FOR THE PILOTAND MAIN STUDIESThe subchapter presents the assumptions concerningthe selection of the sample for the pilot and main stud-iesdesigned by the Foundation of UEK team. Both thequestionnaire-based surveys were conducted by ex-ternalbodies which were given the task of meeting therequirements set for the proposed sample. Thus the pilotsurvey was to be conducted within the borders of the cityof Krakw in the 4th quarter of 2012 and the 1st quarterof 2013, during at least 12 business meetings, including aminimum of 6 events from the congresses, conferences,seminars and symposiums group, at least 4 corporatemeetings (training sessions, courses, workshops, incen-tiveevents), and at least 2 events of the exhibition and/or fair type (both B2B and B2C) held in an exhibitionand fair venue whose operator is a member of the PolishChamber of Exhibition Industry (PCEI).The test sample in the pilot project was to be composedof 4 groups of respondents:a group composed jointly of at least 200 participants ofthe business meetings specified above, broken into con-gress,conference, seminar and symposium participants,participants in corporate meetings, and participants in(B2B and B2C) events, and visitors to fair type eventsbroken down into participants from Poland and abroad,and also participants of events held in the followingsectors: medical, humanities, technical, ICT, and economyand politics1. a group composed of at least 7 people representingthe venues in which the plenary sessions of the 12business meetings specified above were held2. a group composed of at least 10 exhibitors (of whichat least 5 are exhibitors at fairs)3. a group composed of at least 12 agents (includingPCOs) and organisers (e.g. association, a unit of aninstitution of higher education) related to the im-plementationof the business meetings specifiedabove.4. In the pilot project, the external company selectedthrough a tendering procedure carried out researchduring 16 events and conducted questionnaire-basedinterviews with 265 participants from the demandside of the meetings industry.Although similar assumptions were made for the sampleselected for the main survey conducted from the 4thquarter of 2013 to the 2nd quarter of 2014, the experienceobtained made it possible to formulate more preciserequirements for the survey. It was assumed that thesurvey should be conducted during at least 84 businessmeetings specified according to 4 criteria: type (rodzaj;trade fairs and exhibitions, congresses and conferenc-es,incentive events, corporate events), scope (zasig,national and international), sector (brana, medical,humanities, technical, ICT, economy and politics), andsize (wielko, small, that is up to 400 participants, andlarge, that is above 400 participants). As far as the divi-sionof meetings of the trade fairs and exhibitions type(minimum 4 altogether) is concerned, it was requiredthat at least 3 of the B2B or B2C fairs and events were tobe held in a fair and exhibition venue whose operatoris a member of the PCEI, with at least 2 of the eventsof the B2B type and at least 2 of the B2C type. As far ascongresses and conferences, incentive events, and cor-porateevents (minimum 80 altogether) were concerned,it was required that at least 40 of them were nationaland 40 were international (A meeting in which at least5% of participants are foreigners who represent at leasttwo countries outside Poland is considered an interna-tionalone.), at least 30 were large (with the number ofparticipants exceeding 400 people), and at least 15 weresmall (with up to 400 participants). Furthermore, theevents from the congresses and conferences group (withseminars and symposiums also being included) had toinclude at least four 2-day meetings, at least 20 meetingsexceeding the length of two days, and at least 20 one-daymeetings. There were to be at least 20 events from themedical sector, and also 20 from the technical sector,and 20 from the ICT one, with at least 10 events in thehumanities and as many in economics and politics. Thesample for the study was to be composed of five groupsof respondents connected to the events specified above:1. a group of visitors to trade fairs and exhibitions2. a group of exhibitors at trade fairs and exhibitions3. a group of at least 1500 participants in the businessmeetings defined above of the following types: con-gressesand conferences, incentive events, corporate 21. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 21events from which at least 1000 participants wereto come from Poland and at least 500 from abroad4. a group of at least 84 organisers (e.g. associations,university units, business) and agents (including PCO Professional Congress Organisers) involved in theorganisation of the specified meetings (should theorganiser point to a PCO company as one supportingthe organisation of an event, it was required that thestudy should also cover the PCO)5. a group of at least 84 organisers representing thevenues on whose premises the plenary sessions ofthe specified meetings were held.Finally, the main survey was conducted on a sample of92 meetings. The questionnaires were filled in by 1294entities on the demand and supply sides of the meet-ingsindustry in Krakw. Unfortunately, the survey didnot reach the participants in all of the events. Moreo-ver,the survey questionnaires were not returned by allthe organisers of the events covered by the study andmanagers of venues hosting them. This situation can beexplained by many circumstances that can possibly beeliminated or at least mitigated in future.5.4. THE QUESTIONNAIRES AND METHODOLOGYOF ANALYSISThe survey made use of five different questionnairesaddressed to five different groups of respondents bod-iesoperating in the meetings industry market. The firstquestion was addressed to the organiser of the event and(in some cases) to the professional congress organiser(PCO). The goal of this questionnaire was to define thevolume and structure of funds they had at their disposalfor the organisation of the event; it was assumed thatthese funds originated from two main sources: the con-tributionsof the participants and external cofinancing(in the case of corporate events, it was assumed that thefirst and second categories are, as a general rule, absentand the financing is provided by the organiser the cor-porateentity). The second questionnaire referred to theoperator/venue hosting the given event. This could bea hotel, an institution of higher education or a museum,but also a conference venue or a restaurant furnishedwith an appropriate infrastructure. The goal of this ques-tionnairewas to analyse the expenditure (listed by theorganiser) from the point of view of funds allocated tothe renting of the room (venue) and catering and accom-panyingevents (if any). The other questionnaires wereaddressed to the participants from the demand side ofthe market. They investigated participants in meetingsand events (questionnaire No. 3) and also visitors totrade fairs and exhibitions (questionnaire No. 4) andexhibitors at these events (questionnaire No. 5). Eachquestionnaire included an introduction, key questions,and identification questions which made it possible todetermine the profile of the given body. The participants(visitors and exhibitors included) responded during thegiven event (in the case of events exceeding one day, thepolling of information from the congress, conference,business events, and further participants took placeon the second day). The organisers and venue opera-torswere reached in turn within seven days from thecompletion of the meeting or event. The questionnairespresented were used during the study of meetings andevents whose sample was defined on the grounds of thevolume and structure of the meetings industry in Krakw.The pertinent data was taken from Turystyka MICE wKrakowie and Przemys spotka w Krakowie reports, andPCB POT studies (20082013).The selected methodology makes use of the currentlybinding classification of the national economy (PolishClassification of Activities, Polska Klasyfikacja Dziaal-noci,PKD 2007) and singles the meetings industry outfrom it in a framework approved by the Statistical Officein Krakw to enable it to be used in calculations relatedto the tourist economy of the city (see: Gospodarka tur-ystycznaw Krakowie, 2011), i.e., it assigns those types ofbusiness activity to the meetings industry that produceproducts characteristic of tourism and products pur-chasedregularly or incidentally by some or all of the par-ticipantsin tourist traffic (G01G07). Nevertheless, dueto the specific nature of the meetings industry involvingalso forms of business activity (and goods and servicescorresponding to them) that are not characteristic oftypical tourism (cultural, pilgrimage, leisure, and otherforms of tourism), a decision was reached to expandthe range of types of activity admitted by the StatisticalOffice in Krakw by one more group (G08). The types ofactivity that the area of the meetings industry approvedfor the calculations made later in the document are pre-sentedin Table 2.Remembering that to determine the importance of themeetings industry for the economy of Krakw you first 22. 22 KRAKW IMPACT | Influence of the meetings industry on the economy of KrakwTABLE 2. SUBCLASSES OF THE PKD 2007 USED IN THE ANALYSIS OF THE MEETINGSINDUSTRYSubclasssymbolSubclass nameGroup 01 Handicraft, retail sale47.71.Z Retail sale of clothing in specialised stores47.72.Z Retail sale of footwear and leather goods in specialised stores47.75.Z Retail sale of cosmetic and toilet articles in specialised stores47.77.Z Retail sale of watches and jewellery in specialised stores47.78.Z Other retail sale of new goods in specialised stores47.79.Z Retail sale of second-hand goods in storesGroup 02 Hotels55.10.Z Hotels and similar accommodation55.20.Z Holiday and other short-stay accommodation55.90.Z Other accommodationGroup 03 Restaurants56.10.A Restaurants and other stationary food service activities56.10.B Mobile food service activities56.21.Z Event catering activities56.30.Z Beverage serving activitiesGroup 04 Transport50.30.Z Urban and suburban passenger land transport49.31.Z Taxi operation51.10.Z Other passenger land transport not elsewhere classified49.32.Z Inland passenger water transport49.39.Z Passenger air transport52.21.Z Service activities incidental to land transportation77.11.Z Renting and leasing of cars and light motor vehiclesGroup 05 Travel agents, guides79.11.A Travel agency activities79.11.B Tourist agent activities79.12.Z Tour operator activities79.90.A Courier and tourist guide services79.90.B Tourist information activities79.90.C Other reservation service and related activities not elsewhere classifiedGroup 06 Culture59.14.Z Motion picture projection activities 23. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 23need to account for the impact of the primary demand,i.e. tourists arriving in the city and spending their moneythere (Seweryn, 2010, p. 251), attention was focused onthe results of studies conducted among: congress, training, seminar, corporate event, incen-tiveevent, etc. participants visitors to trade fairs and exhibitions, and exhibitors at fairs.The respondents reported the value of various cate-goriesof expenditure they incurred in Krakw relatedto participation in the meeting held there. Each of thecategories was classified into one of the eight groupsof the Krakw economy specified above. For example,expenditure on shopping (e.g. souvenirs, clothes) wasentered into Group 01 (as these are the incomes of busi-SubclasssymbolSubclass name90.01.Z Performing arts90.02.Z Support activities to performing arts90.03.Z Artistic creation90.04.Z Operation of arts facilities91.02.Z Museums activities91.03.Z Operation of historical sites and buildings and similar visitor attractionsGroup 07 Recreation, Physical well-being91.04.Z Renting and leasing of recreational and sports goods93.13.Z Botanical and zoological gardens and nature reserve activities93.19.Z Fitness facilities93.21.Z Other sports activities93.29.Z Activities of amusement parks and theme parks96.04.Z Other amusement and recreation activities77.21.Z Physical well-being activitiesGroup 08 Creative industries and other activities18.12.Z Other printing (books, catalogues, materials etc.)18.13.Z Pre-press and pre-media services18.14.Z Binding and related services18.20.Z Reproduction of recorded media58.11.Z Book publishing58.19.Z Other publishing activities (publication of catalogues, advertising materials, etc.)73.11.Z Advertising agencies74.10.Z Specialised design activities (internal decoration activities)74.30.Z Translation and interpretation activities82.30.Z Organisation of conventions and trade showsSource: Own study based on: Gospodarka turystyczna w Krakowie, 2011 and PKD 2007. 24. 24 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakwnesses classified in section 47 of the PKD), expenditureon accommodation into Group 02 (as these are theincomes of businesses classified in section 55 of the PKD),expenditure on taxis into Group 04, etc.Information acquired during the survey from: event organisers, and operators of the venues where they were held (hotels,institutions of higher education, culture and institu-tions,the centres, etc.)concerning the costs that were incurred in relation tomeetings were used only and solely to fine-tune the ex-penditurein the three previously mentioned participantgroups. It must be clearly underlined thatThe expenditure identified by the participantsand the costs cited by the organisers (PCOsincluded), and operators were not added to-gether!Collection of data from all the businesses involved in themeeting was associated with the need to estimate therough value of participants expenditure against the costsincurred in holding individual events. Moreover, theorganisation costs were used to calculate the potentialfor the cofinancing of events by external sponsors, forexample, public institutions, businesses operating in thegiven sector and having stands at events, and advertis-ing/publicity during meetings. It was assumed that theorganisers did not incur a loss organising an event, i.e.the revenue from participants and other entities paidfor the meeting related expenditure. If, for example, theparticipants expenditure on the conference fee did notcover the costs incurred by the organiser in preparingand managing the event, it seems logical to expect thatsuch a sponsoring took place.As participants in various forms of group businessmeetings and events, visitors to trade fairs and exhi-bitions,and exhibitors at fairs reported the number ofaccompanying persons (partners, children, friends andacquaintances, etc.), it was possible to determine thepercentage of participants arriving in the city for theevent who had accompanying persons and to account forthese additional people (besides the number registeredby the Poland Convention Bureau of the Polish TouristOrganisation, PCB POT) in some expenditure items (e.g.food and drink and related services outside the event,transport, culture) generating revenue for the city.Analyses were conducted for each of the groups listed inthe table above (from 01 to 08) and the primary share ofthe meetings industry i.e. the direct effects (Niemczyk,Seweryn 2008, p. 259) were obtained from the informa-tionon the number of business meeting participants inKrakw in 2013 (according to PCB POT surveys and datafrom fair operators in Krakw), as well as informationabout the overall value of the revenue of businessesclassified in groups 01 08 (which was acquired fromthe Statistical Office in Krakw).As funds feeding the sector of the economy being exam-inedparticipate in commercial turnover, the analysisof economic impact must cover, in addition to directeffects, also indirect and induced effects. Due to the lackof appropriate data in public statistics at the level of acity (municipality), these secondary effects (i.e. indirectand induced) were estimated by the application of mul-tipliervalues designed in accordance with the TouristEconomics model (calculated with the use of the DMAIcalculator purchased for the project) relying on inter-nationalstandards. Yet when referring to Krakw, thismeans that the values of the tourist multiplier approvedfor the Krakw meetings industry were calculated in asimilar manner to the way it is done for other meetingsindustry destinations all over the world.One also needs to mention that there are so-called leaksin the circulation of the money brought and spent by atourist within a given destination area. This means anoutflow of money from the destination occurs whichresults in losses of the multiplier effect in the area. Yet,as long as the demand of local businesses, authorities,and residents can be satisfied by the producers from thedestination, the chain of direct and induced effects doesnot end as it generates cash flow and revenues withinthe area. In the study conducted by our team the leaksmentioned above became visible at the level of directeffects (they were accounted for by the narrowing of thearea of search for data in the questionnaires to expendi-turefor the benefit of Krakw businesses alone) indirectand induced effects (they were accounted for by theapplication of the Tourism Economics model). Summingup, one can claim that the methodology of studies was 25. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 25designed to make it possible to attain the intended goalof the project correctly.5.5. LIMITATIONS ASSOCIATED WITHTHE STUDIES CONDUCTEDA number of limitations were associated with the carry-ingout of a study of the impact of the meetings industryon Krakw. The first worth mentioning was the fact thatanalysis was carried out at the level of the city, whichmeant that there was a lack of statistical data collectedby public institutions for the selected level of disaggrega-tion.A consequence of focusing the attention on eventsin a city area was the inaccessibility of a table with flowsbetween branches (being the second limitation), whichresulted in the need to assume a proprietary methodol-ogyof studies, and a simultaneous lack of the possibilityof direct calculation of the value of the tourist multipliersfor the meetings sector. For this reason, the study makesuse of multiplier values determined for Krakw in linewith the Tourism Economics model (based on the DMAIcalculator purchased for the project), adjusted to thesituation in Krakw and based on international dataanalysis standards. Another major limitation was thefact that there were obstacles in collecting data aboutthe number of meetings in Krakw, and a refusal of manymeeting and event organisers to have the questionnairesurvey conducted during the events they organised.Results of the surveys werethe main source of informationin the analyses. Five differentversions of the questionnairewere used. 26. Analysis of the potentialof the meetings industryin Krakw requires credibledata on events that are organ-isedin the city. 27. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 276. SIZE AND STRUCTURE OF THEMEETINGS INDUSTRY IN KRAKW IN200820136.1. PRELIMINARY REMARKSAnalysis of the potential of the meetings industry inKrakw requires credible data on events that are or-ganisedin the city. The number of meetings in the cityhad already begun to rise in the 1990s, and increasingin association with this was a general understandingof their significance for Krakw; yet there were no datathat would make it possible to assess the scale of thephenomenon in terms of quantities as for a long timepast data had simply not been collected.In 2009, the Krakw Convention Bureau of the MunicipalOffice of Krakw reached a decision that this cognitivegap needed filling and appropriate data needed to becollected. The task was entrusted to a team from theFoundation of the Krakw University of Economics. From2009 to 2012, the team collected and processed informa-tionconcerning the MICE market in Krakw, with someaccount even being taken of the year 2008 in certainaspects. The results were published in the annual Tur-ystykaMICE w Krakowie reports. The data, or at least apart of it, was passed to the Poland Convention Bureauand was used in the annual Przemys spotka i wydarzew Polsce reports.The format in which the national data were gathered inPoland was somewhat different from that adopted inKrakw. The analyses of the Poland Convention Bureauwere disseminated throughout the country. An applica-tionwas designed for individual entities to be able toprovide information on the events they organised onlineand these were organised in their venues, a practicestrongly encouraged by the Poland Convention Bureauand local convention bureaux. So as not to duplicate thestudies and conscious that operators have many otherduties, in 2012 Krakw made do with the results acquiredinternationally in the process of voluntary data provisionby businesses throughout Poland. As a result, the 2012volumes in the meetings industry were far lower thanin the preceding years, which allows one to concludethat only information about some meetings was enteredinto the database. Besides negative consequences forKrakw in terms of its image (information in Przemysspotka i wydarze w Polsce report), this artefact resultsfrom the different data collection techniques and makescomparisons of data from 20082011 incompatible withthe data from 20122013. An additional difficulty stemsfrom the assumption of different events categories in thePoland Convention Bureau in 2012 and 2013.Despite the reservations made above, it would be im-possiblenot to emphasise that the data aggregated forKrakw for a number of years make it possible to obtaina picture of the meetings industry in the city with pri-maryattention on its demand side.6.2. THE NUMBER OF EVENTSIn each of the years 20082011, approximately 8000 busi-nessevents were organised in Krakw in the venues of theoperators who agreed to participate in the survey (see:Fig. 1). One must re-emphasise here that the drop in 2012resulted from a change in the data gathering methodologyand does not reflect the actual condition of the market.One should certainly not believe that all the meetingsorganised in Krakw were entered into the 2013 data-base,and for certain much the same happened in 2012.Although one needs to acknowledge that major progresswas achieved and appreciate the effort of those who be-cameinvolved in the processes of data collection.FIG. 1. THE NUMBER OF BUSINESS EVENTSORGANISED IN KRAKW IN 2008201310000800060004000200008776897270138304185534132008 2009 2010 2011 2012 2013Please note: the data for 2012 and 2013 were gathered according to differ-entmethodology, which does not allow comparison with previous yearsSource: Own study based on data from the following reports: Borodakoet al., 2009; Borodako et al., 2010; Borodako et al., 2011, and data madeavailable by PCB POT. 28. 28 KRAKW IMPACT | Influence of the meetings industry on the economy of KrakwFIG. 2. STRUCTURE OF MEETINGS INDUSTRY EVENTS IN KRAKW IN 200820110% 10% 20% 30% 40% 50% 60%Trade fairs and exhibitionsIncentive eventsTraining, coursesSeminars and symposiumsConferencesSmall congressesIt needs to be emphasised that the number of partici-pantsin the surveys conducted in 20082011 includedall the most significant operators in the city, so that thenumbers from that time may be considered true to theactual situation, even though still undervalued. Never-theless,due to a different rate of return in individualyears, structural analyses are more correct factually indetermining the trends than quantitative analyses.6.3. STRUCTURE OF EVENTSIt is also interesting from the cognitive perspective todefine the structure of business events in Krakw. Thecomparisons for 20082011 were performed using abreakdown into the categories used in the surveys fromthat time (see: Fig. 2).In the four years investigated, the structure underwentslight transformations. Training sessions and courseswere the dominant form of meetings in Krakw in allthe years. The basic change in the structure consisted ofan increase of over 13 percentage points in the numberof incentive events in 2011, as compared to the previousyears. The share of conferences in the overall numberof business meetings in 2010 and 2011 remained at thelevel of several percent which represented a drop ascompared to the two previous years; by 14.1 percentagepoints when compared to 2008 and by 10.8 percentagepoints when compared to 2009. In 2011, the share ofseminars and symposia dropped by over 13 percentagepoints as compared to the previous year, yet it stabi-lisedat a level close to the years 2008 and 2009, that isbelow a tenth of all events. Trade fairs and exhibitionsexperienced a drop in their share of all business eventsorganised in Krakw to the lowest level in the periodinvestigated: i.e. to below 3%. The fall, as compared to2010, amounted to 2.7 percentage points. There was stillonly a small representation of larger meetings in thecity, with the share of congresses not exceeding 1% ofall events, and 2% of small congresses.2,95,66,34,217,74,33,54,351,948,153,750,78,421,76,87,916,917,228311,32,21,21,40,80,90,50,5CongressesSource: Borodako et al., 2011, p. 33.Year 2011Year 2010Year 2009Year 2008 29. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 292013201220112010200946 2 5 4727 3 18 5242 5 4 4837The picture that results from an attempt to comparestructures in 2012 in a slightly more narrow type of clas-sificationprovides an image similar to that from 2012, yetdifferent from that for 2013 (see: Fig. 3).The dominant form among the events categorised inthis manner were corporate events which until 2012 hadaccounted for about every other meeting. The maximumdifferences in their share in the total number of eventsbetween individual years amounted to approximately 6percentage points. The second most important categoryof events held in Krakw was conferences and congress-es,whose share fluctuated from over 27% to over 45%.It must be noted that the year 2011 diverged somewhatfrom other years as in that year the share of incentiveevents was markedly higher (by several percentagepoints), and that of conferences and congresses lower(by a similar percentage) than in other years of the study.This might have been caused by the global crisis and itsimpact on tourism. The structure of meetings proveddifferent again in 2013. Three in every four events wereconferences and congresses. It seems, however, that nosuch drastic change could take place within one year.On the other hand it must be understood that the struc-tureof businesses entering data in 2013 determined thestructure of the events which made comparisons withprevious years difficult, so one should not go too far indrawing conclusions.30%25%20%15%10%5%19 19471928Whether any event is national or international is of majorsignificance for the receiving region, and the definition ofan international event is very material here. In the stud-iesit was assumed that participants in an internationalevent must come from at least 3 countries. Internationalevents in the venues surveyed were more numerous inthe first two years, and less frequent in the followingtwo (see: Fig. 4).The increase in the share of international events in 2013is a perfect indicator for the sector and for Krakw, al-thoughthis value must be approached with a great dealof caution on account of the above-mentioned reserva-tions.The data for Krakw in 20082013 are presented in Fig5 broken down into individual types of internationalevent.The structure of international events throughout theperiod was dominated by conferences/congresses, withtheir dominance being most marked in 2013 when theirshare climbed to as high as 84%. The share of corporateevents continued to grow systematically until 2012, a yearthat marked a significant growth compared to 2008 (byapproximately 20 percentage points) which resultedin it reaching a share of 38%. In turn, their share de-creaseddrastically in 2013 (to 7%). The share of fairs/FIG. 3. EVENT STRUCTURE OF THE MEETINGSINDUSTRY IN KRAKW IN 20082013 ACCORD-INGTO CATEGORIES APPROVED BY POT IN 201220084175 3 8 146 4 544 4 510% 20% 40% 60% 80% 100%Source: Own study based on: Borodako et al., 2013, p. 29; Celuch, 2014,p. 20.FIG. 4. SHARE OF INTERNATIONAL EVENTSIN THE STRUCTURE OF BUSINESS EVENTS INKRAKW IN 200820130%2008 2009 2010 2011 2012 2013Source: Own study based on data from the following reports: Borodakoet al., 2009; Borodako et al., 2010; Borodako et al., 2011, and the datamade available by PCB POT.Conferences/congressesFairs/exhibitionsIncentive eventsCorporate events 30. 30 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw2013201220112010200984 2 7 756 3 4 3852 1 20 27Conferences/congressesFairs/exhibitionsIncentive eventsCorporate eventsexhibitions in the total number of international eventswas highest in the first two years, and in 2009 they evenaccounted for as much as a quarter of all internationalevents.In the following years, fairs/exhibitions made up be-tween1% and 3% of the international events. The shareof incentive events in all international meetings rangedfrom 4% to 6% in the three initial years. In 2011, theirparticipation grew significantly and they accounted fora fifth of all the events. In the following two years, theshare of incentive events returned to the earlier, lowerlevel reaching 7% in 2013.6.4. SEASONALITY OF EVENTS IN THE MEETINGSINDUSTRY MARKETA significant variable for the receiving region is the pe-riodwhen the events take place. In a manner analogousto the previous sections, the listings below specify thepercentage of events in individual months rather thantheir count (see: Fig. 6) for reasons of methodologicalcorrectness.Two peaks are visible in Krakw in the years investigat-ed:a somewhat higher autumn one (September, October),and a somewhat lower yet longer summer peak (March June). It needs noting that the autumn season extendedinto November in 20122013. In effect, a fairly balanceddistribution of events was obtained, ranging from 9% to11% of all events from March to June and from Septemberto November. Traditionally, and in accordance with theliterature, the summer and winter months were lessfrequently selected (5%7%). Generally, the data providepositive information about the reduction of seasonalityof tourism in Krakw thanks to the demand generatedby the meetings industry.6.5. DURATION OF MEETINGS AND EVENTSThe duration of events is important for the region fromthe economic point of view,. The data for Krakw in theoriginal breakdown of events for the period from 2008to 2011 are presented in Fig. 7.At the time, national events lasted for somewhat shorterdurations than international ones. The longest durationFIG. 5. THE STRUCTURE OF INTERNATIONALEVENTS IN KRAKW IN 200820132008625164 3 6 2725 5 2016 4 180% 20% 40% 60% 80% 100%Source: Own study based on: Borodako et al., 2013, p. 23, and the datamade available by PCB POT.FIG. 6. SHARE OF INDIVIDUAL MONTHS IN 20102013 IN THE ANNUAL TOTAL OF BUSINESS EVENTSORGANISED IN KRAKW20132012201120105 7 10 9 10 11 5 4 11 12 9 67 7 12 9 9 8 6 5 10 10 11 76 7 10 10 11 10 6 6 11 10 8 55 6 8 8 12 11 6 6 14 13 9 30% 20% 40% 60% 80% 100%I II III IV V VI VII VIII IX X XI XIISource: Own study based on: Borodako et al., 2013, p. 25, and data made available by PCB POT. 31. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 31FIG. 7. DURATION OF MICE TOURISM EVENTS IN KRAKW IN 20082011national 2008 yearinternational 2008 yearnational 2009 yearinternational 2009 yearnational 2010 yearinternational 2010 yearnational 2011 yearinternational 2011 year32,52,52,52,5congresses smallcongresses2222222,52,5conferences seminars andsymposiums2,5training,courses23,5incentiveevents2,57trade fairsand exhibitions121086420Source: Borodako et al., 2011, p. 58.4FIG. 8. DURATION OF BUSINESS EVENTS ORGANISED IN KRAKW IN 20122013, BROKEN DOWNBY THE SCOPE AND CATEGORY OF THE MEETING1 day2 days3 and more days2012 2013 2013 2012 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 201380%60%40%20%0%C/C intlC/C intlC/C ntlC/C ntlF/E intlF/E intlF/E ntlF/E ntlIE intlIE intlIE ntlC/C congress/conference, F/E fairs/exhibitions, IE incentive events, CE corporate eventsSource: Own study based on PCB POT database.IE ntlCE intlCE intlCE ntlCE ntlNumber of days2,52,52233221,53,521,51,51,51,51,51,522662,522221,51,512,51,511102882,5 32. 32 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakwwas generally characteristic of trade fairs and exhibitions:2.5 days. Two days is an average length of incentive events,congresses, conferences, and training sessions and cours-es.The shortest time was spent on small congresses, andseminars and symposiums only lasted 1.5 days.In 2011, the duration of international events was evenmore varied. The leader here was trade fairs and exhi-bitionswhich lasted on average for as many as 7 days.International incentive events were organised on av-eragefor 4 days. As a rule, congresses on the sites ofoperators covered by the survey lasted a day shorter.The average duration of the remaining meetings, that issmall congresses, conferences, and seminars/symposi-ums,was 2 days.The comparison of the duration of individual events in20082011 makes it possible to state that conferenceswere the events with the most invariable duration in theperiod of the study. As a rule, they were organised for twodays. That was the duration of international conferencesin all the years of the study, while the national ones lastedfor 1.5 days in 2008 and 2010. A similarly stable durationwas characteristic of national seminars/symposia, whichwere organised for 1.5 days. The duration of internationalseminars and symposia ranged from 2 to 2.5 days.In turn, the classification used in PCB POT studies (break-ingthe meetings down into three categories: one-day,two-day, and three-day or longer) made it possible toobserve the following trends in 2012 and 2013 (see: Fig. 8):One-day meetings were predominant among conferencesand congresses: among national events, they accountedfor more than one in two in both the years in question,and among the international events organised in 2012 40%. It must however be remarked that in 2013 it was the3-day and longer events that had the largest share amongthe international conferences/congresses (over 40%).There was a visible difference in length between nationaland international fairs/exhibitions. In 2012 internationalones were primarily 3-day and longer events, and in 20132-day ones. By contrast, every other national event of thetype organised in Krakw ended on the same day.As far as national incentive events are concerned, theywere primarily one day events in both 2012 and 2013,and the situation was similar for international incentiveevents in 2013. However international meetings in 2012were atypical, being dominated by events lasting for 3days or longer.There were no clear trends visible in the duration ofcorporate events. In 2012, the distribution was fairlyconsistent as far as the duration is concerned independ-entof the national or international character. The onlymajor difference was that the proportion of 3-day andlonger international events was 10 percentage pointshigher. However both national and international eventsorganised in 2013 were dominated by one-day events,with the dominance being significant among the nationalones (with over 2/3 being one-day events).6.6. NUMBER OF PARTICIPANTSThe number of participants (see: Fig. 9) is as importantfor the citys economy as the number of events, if notmore important.In as much as the data from 2012 cannot be compared dueto a different methodology, the drops in the early yearsmust be explained by a lower rate of return in 2010 and2011, a change in the structure of events and the globaleconomic crisis, which also had an impact on tourismFIG. 9. THE NUMBER OF PARTICIPANTS IN BUSI-NESSEVENTS HOSTED IN KRAKW IN 20082013100000080000060000040000020000008696008592004813663509402868984279802008 2009 2010 2011 2012 2013Please note: the data for 2012 and 2013 were gathered according to adifferent methodology, which does not allow comparison with previousyearsSource: Own study based on data from the following reports: Borodakoet al., 2009; Borodako et al., 2010; Borodako et al., 2011, and data madeavailable by PCB POT. 33. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 332013201220112010200942 8 859 2 17Conferences/congressesFairs/exhibitionsIncentive eventsCorporate eventsin Krakw. One should note that the data entered intothe PCB POT database for 2013 records nearly 428,000participants in Krakw meetings and events.An analysis of participant structure makes it possible tostate that the most numerous group of guests at Krakwbusiness meetings throughout the entire period of thestudy were tourists coming to Krakw for business fairsand events (see: Fig. 10). Their share was approximately2/3 in 2008, 2009, and 2012, while 2011 was an exceptionwith visitors to fairs and events accounting for only afifth of all the participants in meetings, while in the re-mainingyears, participants in fairs and events accountedfor approximately 40% of all participants arriving inKrakw for business meetings.It should be noted that there was about the same shareof participants in fairs/exhibitions and congresses/con-ferencesin 2013, which was the result of an increase inthe number of congresses/conferences in the city and ofthe number of participants in such events.In the period in question, corporate events brought inseveral percent of all participants in meetings in Krakw.The year 2011 was an exception, when the percentagereached nearly a quarter of all the participants, with theother exceptional year being 2013, when they accountedfor less than a tenth of the total. The lowest share increating the demand in Krakw belongs to participantsin incentive events. Their share was always in the singlefigures of per cent, with the highest value (8%) beingachieved in 2013.In conclusion, it must be stated that with respect tothe numbers of participants in various types of groupbusiness meetings, it was and is fairs/exhibitions andconferences/congresses that are most important forthe city.FIG. 10. STRUCTURE OF BUSINESS EVENT PAR-TICIPANTSHOSTED IN KRAKW IN 20082013BROKEN DOWN BY MEETING TYPE2008422249 20 7 2439 39 6 1620 65 3 1323 62 3 120% 20% 40% 60% 80% 100%Source: Own study based on: Borodako et al., 2013, p. 32.it was and is fairs/exhibitionsand conferences/congressesthat are most importantfor the city. 34. 34 KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw7. VALUE OF THE EXPENDITURE OF THOSEON THE DEMAND SIDE OF THE MEETINGSINDUSTRY IN KRAKW IN 2013With respect to the main goal of the project, one of themost crucial questions in the questionnaire surveysconducted was to learn the value and purpose of ex-penditureof the demand side of the meetings industryin Krakw, broken down into three groups, i.e. partici-pantsin congresses and other group business meetingsof similar character (congresses, conferences, seminars,symposiums, training sessions, workshops and othercorporate events, incentive events), visitors to trade fairsand exhibitions, and exhibitors at fairs.The information gathered during questionnaire-basedinterviews among participants in congresses and othermeetings of similar character allows us to make the state-mentthat their expenditure in Krakw primarily consistsof paying the event participation fee (mentioned by morethan 83% of respondents), for food (more than 2 out of3 respondents), and for accommodation throughout theevent (nearly 65%): see: Fig. 11.The least frequent allocation of money by participants incongresses and other group business meetings arrivingin Krakw is recreation (SPA, gyms, swimming pools, etc.,with less than 3% of responses indicating that moneywas spent on this), and on accommodation before and/or after the event (approximately 7%).As far as the value of expenditure is concerned, the larg-estamounts are spent on participation in group businessmeetings (on average PLN 730 per person, see: Fig. 12).The second most valuable item accommodation duringthe event was lower by nearly 50% and was approx-imatelyPLN 390. Relatively large amounts were spentby participants in congresses and other meetings ofsimilar character on shopping (approximately PLN 220)and food (approximately PLN 160). The smallest sumswere allocated to transport (under PLN 50) and unfor-tunatelyto culture (visiting the city, concerts, theatres,etc. around PLN 70), and also to recreation (aroundPLN 110).The second group of respondents were visitors to tradefairs and exhibitions. The information acquired duringthe survey proves that the greatest number of them(nearly 2 out of 3) spent money which is worth empha-sising not on the fee for the fair but on food and drinksin the city (see: Fig. 13). Quite often the respondents alsomentioned food and drink provided on the premises ofthe fair (nearly 45%) and transport (costs of travellingto the event by approximately 46%). Nearly 41% of vis-itorsto trade fairs and exhibitions used accommodationduring the event, and only less than 2% used it beforeor after. Not unlike congress participants, the group onlyrelatively rarely mentioned expenditure on recreation(4%) and culture (10%).The analysis of average expenditure of business fair andexhibition visitors demonstrates that their largest out-layis on accommodation during the event itself (nearlyPLN 240) and not on food and drink outside the fair prem-ises(nearly PLN 115), which respondents mentioned mostfrequently. The expenditure on shopping in commercialcentres and shops (nearly PLN 230) proved comparableto the level of expenditure for accommodation duringthe event (see: Fig. 14). While the amount spent on thefair admission fees (around PLN 30) was the lowest ofthe costs. A similar amount of money was spent by visi-torson transport, food and drink at the fair, and culture(approximately PLN 40 each).The last, third group of respondents of the demandside of the meetings industry were exhibitors at fairs.Nearly all people representing this group acknowledgedthat during their stay in Krakw they spent money onfood and drink (see Fig. 15). A majority (over 70%) alsospent it on accommodation during the event. Nearlyevery other respondent declared paying for transportand over 45% for entertainment. The least numerousgroup were those who spent money on participation inintegrative events, culture, and recreation (only around4% each).Average individual expenditure on food and drink (peo-plerepresenting the company at fairs/events or present-ingthe companys range to visitors) was, however, notthe highest (see Fig.16).This was because the expenses related to accommoda-tionduring the event (close to PLN 820) were nearly 3times as high. A relatively large amount of money wasalso paid for accommodation before and/or after theevent (nearly PLN 580), shopping in commercial centresand shops (nearly 310 PLN per person), and on entertain-ment(pubs, nightclubs, etc. in excess of PLN 220). It is 35. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 35FIG. 11. SHARE OF PARTICIPANTS IN CONGRESSES AND OTHER MEETINGS OF SIMILAR CHARACTERIN KRAKW IN 2013 INCURRING EXPENDITURE DURING THEIR STAY IN THE CITY (BROKEN DOWN BYTYPE)45329265367657830% 20% 40% 60% 80% 100%ShoppingRecreationEntertainmentCultureTransportFood and drinksAccommodation beforeand after the meetingAccommodation during the meetingParticipation feeSource: Own study based on the surveys conducted.FIG. 12. VALUE OF AVERAGE EXPENDITURE BY CONGRESS OR OTHER SIMILAR BUSINESS MEETINGPARTICIPANT IN KRAKW IN 2013 (IN PLN PER CAPITA)21710712769491563922467330 100 200 300 400 500 600 700 800ShoppingRecreationEntertainmentCultureTransportFood and drinksAccommodation beforeand after the meetingAccommodation during the meetingParticipation feeSource: Own study based on the surveys conducted. 36. 36 KRAKW IMPACT | Influence of the meetings industry on the economy of KrakwFIG. 13. PERCENTAGE OF FAIR VISITORS IN KRAKW IN 2013 BROKEN DOWN BY EXPENDITURE TYPEDURING THEIR STAY IN THE CITY0% 10% 20% 30% 40% 50% 60% 70% 80%ShoppingRecreationEntertainmentCultureTransportFood and drinks outside the fairFood and drinks at the fairAccommodation during the fairAccommodation beforeand/or after the fairFair admission fees324261046654541233Source: Own study based on the surveys conducted.FIG. 14. VALUE OF AVERAGE EXPENDITURE OF VISITORS TO FAIRS IN KRAKW IN 2013 (IN PLN PERCAPITA)2299210141371143924098330 50 100 150 200 250ShoppingRecreationEntertainmentCultureTransportFood and drinks outside the fairFood and drinks at the fairAccommodation during the fairAccommodation beforeand/or after the fairFair admission feesSource: Own study based on the surveys conducted. 37. KRAKW IMPACT | Influence of the meetings industry on the economy of Krakw 37FIG. 15. SHARE OF EXHIBITORS AT FAIRS IN KRAKW IN 2013 BROKEN DOWN BY TYPE OF PERSONALEXPENDITURE IN THE CITY3144544949578400% 20% 40% 60% 80% 100%ShoppingRecreationEntertainmentCultureTransportIntegrative eventFood and drinksAccommodation during the fairsAccommodation beforeand/or after the fairsSource: Own study based on the surveys conducted.FIG. 16. AVERAGE VALUE OF INDIVIDUAL EXPENDITURE OF EXHIBITORS AT FAIRS IN KRAKW IN 2013(IN PLN PER CAPITA)308422222988762788195780 200 400 600 800 1000ShoppingRecreationEntertainmentCultureTransportIntegrative eventFood and drinksAccommodation during the fairsAccommodation beforeand/or after the fairsSource: Own study based on the surveys conducted. 38. 38 KRAKW IMPACT | Influence of the meetings industry on the economy of KrakwFIG.17. SHARE OF EXHIBITORS AT FAIRS IN KRAKW IN 2013 BROKEN DOWN BY TYPE OF CORPORATEEXPENDITUREworth noting that the lowest spending in this group ofrespondents was unfortunately allocated to recreation(PLN 40) and culture (below PLN 30).Exhibitor expenditure covers not only the money spentindividually by people representing the company atfairs and/or exhibitions or presenting the commercialoffer to visitors. It should also account for various ex-pendituresmade by the company presenting itself atthe event.Nearly all respondents mentioned that their businessspends funds on the renting of space in the fair, whichin this case seems obvious (see: Fig. 17).Other costs were declared far less often, and most fre-quentlyincluded employment of other personnel fromKrakw (approximately 9%), and the services of FairHandling Agencies (over 7%).Despite