Economic Impact of Leipzig Congresses #icca11 MONDAY 24/10/11

ifo Institut für Wirtschaftsforschung an der Universität München

Economic Impact of Leipzig Congresses

for Leipzig, the Free State of Saxony, the new federal states and Germany

Leipzig, 11 May 2010


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Contents

1. Objectives of the study

2. Excursus: structure of the study

3. Individual results: 2009

4. Overview/summary

5. Excursus: competition analysis


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1. Objectives of the study


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Objectives of the study

- Determine the spending of the conference participants and exhibitors for 2009

- Direct economic effects on production, employment and tax revenue

- Identification of indirect economic effects via supply linkages and income effects on production, employment and tax revenue

- Regional economic effects for Leipzig, Saxony, the new federal states and Germany

Comparison: 2002, 2004, 2006 and 2009


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2. Excursus: structure of the study


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Structure of the studySurveys- Participants- Exhibitors

Indicator extrapolationsfor non-surveyed

congresses

Regional breakdown of expenditures:

- Leipzig, Saxony, the new federal states, Germany, abroad -

(Direct effects: production, employment, tax revenue)

Structuraldata

Input-output calculation

(Indirect effects: production, employment, tax revenue)

Extrapolation

Total expenditures

Extrapolation

Total expenditures

(dir

ect

and

ind

irec

t)

= in

du

ced

eff

ects

Info from1,608

respondents


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Expenses of conference participants

Travel costs (long distance, urban transport)

Stand construction, services for exhibitors

Expenditures of stand personnel (accommodation, meals)

Shopping, entertainment, leisure (incl. holiday)

Travel and personnel expenses (pre- and post-processing)

Restaurants (own needs, hospitality), accomodation

Expenses of the exhibitors


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Indirect effects

Hotels(direct)

Demand

Demand forinputs (indirect)

Gastronomyservices

Laundryservice

Cleaningservice

Demand for food and drink

Production of agricultural goods

Fertilizers of the chemical industry


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3. Individual results: 2009


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Individual results: surveyed congresses

Ausgaben je Teilnehmer (befragte Kongresse)

- in Euro -

102

426

507

520

558

933

0 100 200 300 400 500 600 700 800 900 1000

MittelständischerUnternehmertag

RegenerativeMedizin

Gesellschaft fürNuklearmedizin

Diabetes-Gesellschaft

DOG-Kongress(Augenheilkunde)

LINC (Kongress fürGefäßmedizin)

Average: €382

4 days; ca. 50% foreign participants


4 days; national congress

4 days; national congress


1 day; regional meeting

LINC (Congress forVascular Medicine) DOG Congress(Ophthalmology)

Diabetes Society

Society forNuclear Medicine RegenerativeMedicine

Congress ofMedium-Sized Business

Expenditures per participant (surveyed congresses)

- in euros -


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Expenditure structure of the Congress participants- Comparison of the surveyed congresses -

23,631,3 31,5

38,734,1

15,1

25,2

19,6 19,8

19,024,2

32,9

19,723,8

29,123,3

15,8

15,4

5,6

5,2

4,0 4,1

3,5

10,8

3,7

3,93,8 4,0

6,88,94,1

4,33,7 4,9

10,48,314,5 5,4

5,0 2,4 2,55,5

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LINC DOG Diabetes NuclearMedicine

Reg.Medicine

Med.-SizedBusiness

Misc. (incl.entertainment)

Representation

Extended stay

Local transport

Shopping

Gastronomy

Traveling costs

Accommodation

(% responses: difference to 100)


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Individual results: surveyed congresses

Ausgaben je Aussteller (befragte Kongresse)

- in Euro -

5.192

7.403

15.344

23.758

19.010

22.987

0 2.500 5.000 7.500 10.000 12.500 15.000 17.500 20.000 22.500 25.000

MittelständischerUnternehmertag

RegenerativeMedizin

Gesellschaft fürNuklearmedizin

Diabetes-Gesellschaft

DOG-Kongress(Augenheilkunde)

LINC (Kongress fürGefäßmedizin)

Average: €10,430

4 days

4 days

4 days

4 days

3 days

1 day

LINC (Congress forVascular Medicine) DOG Congress(Ophthalmology)

Diabetes Society

Society forNuclear Medicine RegenerativeMedicine Congress ofMedium-Sized Business

Expenditures per exhibitor (surveyed congresses)

- in euros -


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Expenditure structure of the Congress exhibitors- Comparison of the surveyed congesses -

21,727,2

21,8 23,5 24,6 25,9

13,0

21,4 30,019,8

22,625,46,2

11,4 3,1

8,89,6

10,424,2

18,2

18,918,0

24,318,3

16,6

6,38,0 13,5

8,314,39,6

8,7 10,5 10,55,2

1,46,3 5,7 6,9 4,7 4,9 3,1

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

LINC DOG Diabetes NuclearMedicine

Reg.Medicine

Med.-SizedBusiness

Misc.

Gastronomy,entertainment

Accommodation

Advertising,representation

Traveling costs

Services for exhibitor

Stand construction

Personnel costs

(% responses: difference to 100)


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4. Overview, summary


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16,0

24,7

5,1 6,3

12,9

22,7

5,5 6,5

15,9

21,5

4,6 6,3

21,0 20,4

4,5 5,3

05

10152025303540

1. Traveling expenses 2. Gastronomy 3. Extended stay 4. Shopping

2002200420062009

Expenditure structure of the conference participants- Congresses 2002, 2004, 2006 and 2009 -

Total (2009): €36.4 million 2006: €33.1 million

+ 10.0%

Expenses per participant: €382

29,8

6,8 5,6 5,7

35,4

4,76,5 5,8

34,0

6,4 5,7 5,6

32,9

5,5 5,5 4,9

05

10152025303540

5. Accommodation 6. Representation 7. Local transport 8. Misc. (incl. entertainment)

2002200420062009

+ 8.8%

2006: €351


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21,7

12,6

29,6

15,1

24,2

10,7

28,3

13,8

23,5

10,3

27,7

15,4

23,1

10,2

25,2

18,4

0

10

20

30

40

50

1. Stand construction 2. Services for exhibitor 3. Personnel costs 4. Traveling expenses

2002200420062009

Total: €21.5 million

Expenditure structure of the congress exhibitors- Congresses 2002, 2004, 2006 and 2009 -

2006: €18.0 million

+ 4.8%

+ 19,4%

9,44,3 5,8

1,5

9,75,2 6,3

1,8

9,45,3 6,6

1,8

8,65,4 8,0

1,10

10

20

30

40

50

5. Advertising, representation 6. Gastronomy, entertainment 7. Accommodation 8. Misc.

2002200420062009

Expenses per congress exhibitor: ca. €10,430 2006: €9,954


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2002 2004 2006 2009

Total expenses (million €) 20.1 44.0 54.8 62.4

Spending in Leipzig (million €) 12.8 26.8 36.0 39.1

Expenditures per participant (€) 272 265 351 382

Expenditures per exhibitor (€) 8,488 8,827 9,954 10,430

Production in Germany (million €) 29.1 66.1 79.4 94.4

Employment in Germany (absolute) 418 931 1,077 1,235

Employment in Leipzig (absolute) 278 581 726 791

Tax revenue (million €) 5.7 12.6 15.1 19.6

Tax revenue in Leipzig (million €) 0.4 0.8 1.0 1.3

Indirect returns in Leipzig (x times) 9.6 13.6 13.8 12.3

Overview: congresses


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Summary (1 of 3)

1. The spending of the conference participants increased between 2002 and 2009 from €20 million to over €62 million. This also includes expenses incurred abroad (e.g., travel costs, stand construction of congress exhibitors). Of regional, state and national economic interest are the effects that are felt in Germany. For this, only the expenditures made in Germany and the resultant indirect outputs are considered. The economic variables determined in the Ifo study are the production activity, the jobs induced by the congresses and the tax revenues generated by CCL congresses.

2. A continuous increase of key economic indicators has been determined. Induced by the CCL congresses, not only the nationwide production activity increased from €29 million to over €94 million from 2002 to 2009, but also the number of congress-induced jobs increased from about 420 to nearly 1,250. In addition, tax revenue increases were triggered by the CCL congresses of just under €6 million to nearly €20 million.

In recent years, on behalf of the Leipziger Messe GmbH, the Ifo Institute for Economic Research has regularly analysed the economic impact of congresses for the region, the new federal states and the Federal Republic of Germany. For the period 2002 to 2009, the following key findings were determined:


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Summary (2 of 3)

3. This positive development was evident not only in Germany but also in the Free State of Saxony. In 2009, the CCL congresses in the Free State of Saxony generated an output of almost €56 million. This accounted for jobs for 875 people in the Free State of Saxony. The spending of visitors and exhibitors induced by the congresses also led to tax revenues for the Free State of Saxony: tax revenues of €5.7 million was the result of congresses conducted by CCL.

4. The indirect returns (event turnover for congress-induced turnover in Leipzig) as an indicator for the local significance of the CCL congresses rose from 9.6 to 12.3 in the period 2002 to 2009. A event turnover (in euros) thus generates more than a twelve-fold value in Leipzig . The reason for the slightly lower indirect returns in 2009 is that the growth of the CCL was stronger than the increase of international participants. The latter, however, also contributed to the congress events bringing about a clear increase in output, employment and revenue effects from 2002 through 2009.


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Summary (3 of 3)

5. Spending per delegate rose from €272 per participant (2002) to €382 (2009). This is attributable to the growth of national congress events, which in turn led to a greater number of trans-regional participants (participants the former West Germany and abroad) coming to Leipzig. Nationwide conference participants stay longer at the venue and spend more on accommodation and meals. Hotels and restaurants are therefore among the main beneficiaries of the CCL conference events.

6. Expenditure per congress exhibitor developed positively. In 2002 almost €8,500 was spent per exhibitors, and in 2009 it was more than €10,400. The increase is due in particular to the increased rental space per exhibitor: the larger stand space necessitated by exhibitors’ increase in personnel, which resulted in additional expenses at the venue. In the case of national exhibitors, this higher staffing led to more nights spent in Leipzig and also contributed to an increase in the economic impact.


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5. Excursus: competition analysis


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Düsseldorf Cologne Munich Essen Hamburg Leipzig 2007 2007 2007 06/08 2006 06/09

Total expenses (million €) 238* 208* 42.0 / 42.4 72 54.8 / 62.4

Expenditures in individual city(million €) 36.0 / 39.1

Expenditures per participant (€) 490 468 660 268 / 298 409 351 / 382

Expenditures per exhibitor (€) 9,954 / 10,430

Indirect returns in (x times) 16.7 16.6 13.8 / 12.3**

Production in G. (million €) 79.4 / 94.4

Employment in G. (absolute) 4,497* 4,097* 1,147* / 1,274* 1,769* 1,077 / 1.235

Employment in individual city(absolute) 3,215* 3,196* 656* / 708* 1,369* 726 / 791

Tax revenue (million €) 79* 67* 18* / 21* 15.1 / 19.6

Tax revenue inindividual city (million €) 0.6 / no info 1.0 / 1.3

Overview: congresses- Socio-economic effects -

* = Congresses and events

** = Turnover growth of the CCL is even stronger in relation to rising number of international participants; for this reason, lower indirect returns in Leipzig in comparison to 2006.

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Economic Impact of Leipzig Congresses #icca11 MONDAY 24/10/11

Education

days national congress

ccl congresses

economic impact of congresses

indirect economic effects

germany leipzig

participantsurveyed

exhibitorsurveyed congresses

number of congress