Metodyka A. Niemczyk and R. Seweryn - Influence of meetings industry on the economy of Krakow

+

Influence

of the meetings

industry

on the economy

of Kraków

Based on the project

Steering the meetings industry in Kraków: assessment and monitoring of the

economic effect of the meetings industry on the economy of Kraków with the

use of good practices from Switzerland

Agata Niemczyk

Renata Seweryn

Krzysztof Borodako – chief

Jadwiga Berbeka

+ Agenda

1. Kraków as the city of

meetings industry

2. Methodology of the

influence of meetings

industry on Kraków’s

economy

3. Conclusion – resulats

of our research

+

Source: http://pl.hotels.com/de1053546-th14-

p2/biznesowe-hotels-krakow-polska/page-2/

Source: http://www.tripadvisor.co.uk/Hotel_Review-

g274772-d1728175-Reviews-Hilton_Garden_Inn_Krakow-

Krakow_Lesser_Poland_Province_Southern_Poland.html

Source:

http://www.polhotels.com/Cracow/Qubus/index

2.htm

Source: http://www.parkinn.pl/hotel-krakow

Source: http://news.o.pl/2014/03/24/zbigniew-

preisner-centrum-konferencyjne-ice-koncert-

krakow/

Source:

http://krakow.pl/ccb/11614,artykul,miedzynarodowe

_centrum_targowo-kongresowe_expo_krakow.html

Source: http://wislacanpack.pl/wisla-can-pack-

krakow-zagra-w-krakow-arenie/

Source:http://krakow.pl/ccb/zorganizuj_spotkanie

/11454,artykul,krakow_airport.html

Source: http://wiadomosci.dziennik.pl/wydarzenia/galeria-full/ Source: http://serwisy.gazetaprawna.pl/transport/galerie

+

Kraków rich with meetings

and their participants –

tourists!!!

+

In 2012 – 1855 group meetings

In 2013 – 3413 group meetings

In 2012 – 286 898 participants

In 2013 – 427 980 participants

Meetings industry in Kraków

in 2012-2013

0% 20% 40% 60% 80% 100%

2012

2013

2012

2013

46%

75%

22%

42%

2%

3%

59%

42%

5%

8%

2%

8%

47%

14%

17%

8%

Conferences/congresses Fairs/exhibitions

Incentive events Corporate events

Share of business events and their

participants hosted in Kraków in 2012-2013

broken down by meeting type

Source: Own study based on PCB POT database.

Even

ts

Part

icip

an

ts

+

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

2012

2013

7%

5%

7%

7%

12%

10%

9%

9%

9%

10%

8%

11%

6%

5%

5%

4%

10%

11%

10%

12%

11%

9%

7%

6%

I

II

III

IV

V

VI

VII

VIII

IX

X

XI

XII

Share of individual months in the annual

total of business events organized in

Kraków in 2012–2013

Source: Own study based on PCB POT database.

+ Duration of business events in Kraków

in 2012–2013 by types

C/C – congress/conference; F/E – fair/exhibition; IE – incentive events; CE –corporate events

Source: Own study based on PCB POT database.

0%

10%

20%

30%

40%

50%

60%

70%

80%

C/C Inter.

C/C Inter.

C/C Nat.

C/C Nat.

F/E Inter.

F/E Inter.

F/E Nat.

F/E Nat.

IE Inter.

IE Inter.

IE Nat.

IE Nat.

CE Inter.

CE Inter

CE Nat.

CE Nat.

2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013

1 day 2 days 3 and more days

+

Methodology

of the influence

of meetings industry

on Kraków’s economy

+ RESEARCH GOAL

the estimation of the economic significance

of meetings industry for the economy of KRAKÓW

with special focus on the key parameters:

GDP

Employment (annual FTEs)

Salaries

Taxes and levies

+ Detailed goals

How many days in average last the events

in Kraków?

How long the business tourists stay in Kraków

(before, during and after the event)?

Are the business tourists coming to the Kraków

alone or with accompanying persons?

How much and on what purposes they spend

money in Kraków?

What kind of lodging do they select for sleep?

How the costs of the organizers, intermediaries

and host venues balance with the expenditure

of the participants?

+ Research process

1) the review of literature concerning the impact

of tourism (in general, business tourism and

meetings industry in particular) on economy of

the state, region or a city;

2) the review of accessible secondary statistical

data, concerning tourism and selected economy

sectors in Kraków;

+

Used data

Secondary data taken from

Central Statistical

Office of Poland Secondary data

taken from Statistical Office in Kraków

Secondary data taken from

reports: Travel and tourism economy in

Kraków

Secondary data taken from: Statistical Yearbook of Kraków

Selectioned data taken from

program: Kraków’s Scientific

Meetings (years 2012, 2013)

Primary data taken from

pilot surveys (16 business meetings)

Primary data taken from main surveys

(92 business meetings, 1294 entities on the

demand and supply sides of the meetings

industry)

Primary data taken from Poland

Convention Bureau POT (Polish

Tourism Organization)

years: 2012 and 2013

Primary data taken from Cracow

Convention Bureau of the Municipal

Office of Kraków – MICE tourism in Kraków research (years 2008-2011)

+ 3) classification of economy (PKD 2007)

was used as the basis of our methodology;

4) activities included in meetings industry

was set aside in accordance with framework

of Statistical Office in Kraków;

5) plus Creative industries and other activities;

Research process

Group (Sector)

Group 01 Handicraft, retail sale

Group 02 Hotels

Group 03 Restaurants

Group 04 Transport

Group 05 Travel agents, guides

Group 06 Culture

Group 07 Recreation, physical well-being

Group 08 Creative industries and others activities

Number of

chosen

subclasses

6

3

4

7

6

7

7

10

+ Research process

6) questionnaires – were prepared and applied at

pilot survey in Kraków;

+ Research process

five different questionnaires

+ Research process

The research process was consulted

with Swiss partners and representatives

of the meetings industry from Kraków

+ Research process

7) main survey, conducted on a sample of

92 meetings;

+ Value of average expenditure by congress or

other similar business meetings participants,

trade visitors and exhibitors in Kraków

in 2013 (in USD per person)

226

76

121

48

15

21

39

33

67

10

30

74

47

11

13

31

28

71

23

178

252

86

27

9

68

13

95

0 30 60 90 120 150 180 210 240 270

Participation fee

Fair admission fee

Integrative event

Accommodation before and after the meeting

Accommodation during the

meeting

Food and drinks

Transport

Culture

Entertainment

Recreation

Shopping

USD

Trade exhibitors Trade visitors Meetings participants

Source: own calculation based on survey results.

+ Share of participants in congress or other similar

business meetings participants, trade visitors and

exhibitors in Kraków in 2013 incurring expenditure

during their stay in the city (broken down by type)

Source: own calculation based on survey results.

83,45%

6,92%

64,89%

66,80%

53,26%

26,28%

29,29%

2,51%

45,24%

32,80%

1,60%

40,80%

83,20%

45,60%

10,40%

26,40%

4,00%

32,00%

3,64%

40,00%

78,18%

94,55%

49,09%

3,64%

45,45%

3,64%

30,91%

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Participation fee

Fair admission fee

Integrative event

Accommodation before and after the

meeting

Accommodation during the meeting

Food and drinks

Transport

Culture

Entertainment

Recreation

Shopping

Trade exhibitors Trade visitors Meetings participants

+ Share of exhibitors at fairs in Kraków broken

down by type of personal expenditure in the

city and the average spending per an

exhibitor (in USD) in 2013

Source: own calculation based on survey results.

506

1 684

62

1 311

596

711

9,09% 7,27%

1,82%

3,64% 5,45%

98,18%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

0

200

400

600

800

1000

1200

1400

1600

1800

Employment

of additional

staff from Krakow

Fair Handling

Agency

services

Free tickets

for partners

Organisation

of an event for

partners

Advertisment Costs of

renting space

at the fair

USD

+

Used data

Secondary data taken from

Central Statistical

Office of Poland

Secondary data taken from Statistical Office in Kraków

Secondary data taken from

reports: Travel and tourism economy in

Kraków

Secondary data taken from: Statistical Yearbook of Kraków

Selectioned data taken from

program: Kraków’s Scientific

Meetings (years 2012, 2013)

Primary data taken from

pilot surveys (16 business meetings)

Primary data taken from main surveys

(92 business meetings, 1294 entities on the

demand and supply sides of the meetings

industry)

Primary data taken from Poland

Convention Bureau POT (Polish

Tourism Organization)

years: 2012 and 2013

Primary data taken from Cracow

Convention Bureau of the Municipal

Office of Kraków – MICE tourism in Kraków research (years 2008-2011)

+

Group (Sector)

Group 01 Handicraft, retail sale

Group 02 Hotels

Group 03 Restaurants

Group 04 Transport

Group 05 Travel agents, guides

Group 06 Culture

Group 07 Recreation, physical well-being

Group 08 Creative industries and others activities

SHARE HELD BY THE MEETINGS INDUSTRY

IN SELECTED SECTORS OF THE KRAKÓW

ECONOMY IN 2013

Source: Own study based on survey results and on the data obtained from the Statistical Office in Kraków.

% share in the

group (sector)

13,76%

76,85%

24,18%

12,69%

9,00%

22,60%

16,01%

14,45%

+

8) a direct impact of meetings industry on the

selected sectors of Kraków economy was

calculated;

Research process

Terms of impact of the meetings

industry on the economy of Kraków Amount in 2013

Employment 8 890 persons

Salaries USD 58.2 mln

Taxes and levies USD 18.5 mln

+

As we know ……

+

more taxes paid to the budget

THE LOCAL ECONOMY

The increase in tourism traffic

a flow of capita

development of small and medium enterprises

new jobs generated

higher turnovers of local enterprises

more money earned by local population

+

Source: http://www.wetplanetwhitewater.com/rafting/put-your-money-where-your-values-are-green-drinks-and-

sustainable-travel/

+

9) use multipliers obtained from model: Tourism

Economics, calibrated for Kraków’s data;

Research process

Terms of impact of the

meetings industry

on the economy of Kraków

Amount

in 2013

The overall share

in the economy

of Kraków in 2013

GPD USD 329.6 mln 2,37%

Employment 12 214 persons 3,25%

Salaries USD 97.3 mln 4,00%

Taxes and levies USD 27.6 mln 2,40%

Source: Own study based on survey results and on the data obtained from the Statistical Office in Kraków.

+ Final report

http://krakowimpact.pl/

wp-content/uploads/ki-

raport-2014-EN-WEB.pdf

+

Thank you

for your attention Agata Niemczyk [email protected]

Renata Seweryn [email protected]