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

Krzysztof Borodako – chief Jadwiga Berbeka

Agata Niemczyk Renata Seweryn

+

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-th14p2/biznesowe-hotels-krakow-polska/page-2/

Source: http://www.tripadvisor.co.uk/Hotel_Reviewg274772-d1728175-Reviews-Hilton_Garden_Inn_KrakowKrakow_Lesser_Poland_Province_Southern_Poland.html

Source: http://www.parkinn.pl/hotel-krakow Source: http://www.polhotels.com/Cracow/Qubus/index 2.htm

Source: http://krakow.pl/ccb/11614,artykul,miedzynarodowe _centrum_targowo-kongresowe_expo_krakow.html

Source: http://wislacanpack.pl/wisla-can-packkrakow-zagra-w-krakow-arenie/

Source: http://news.o.pl/2014/03/24/zbigniewpreisner-centrum-konferencyjne-ice-koncertkrakow/

Source:http://krakow.pl/ccb/zorganizuj_spotkanie /11454,artykul,krakow_airport.html

Source: http://serwisy.gazetaprawna.pl/transport/galerie

Source: http://wiadomosci.dziennik.pl/wydarzenia/galeria-full/

+ Kraków rich with meetings and their participants – tourists!!!

+

Meetings industry in Kraków in 2012-2013  In

2012 – 1855 group meetings

 In

2013 – 3413 group meetings

 In

2012 – 286 898 participants

 In

2013 – 427 980 participants

42%

2013

22%

2012

Events

42%

59%

2%

75%

2013

0%

20%

3% 8%

2%5%

46%

2012

8%

40%

8%

17%

14%

47%

60%

80%

Conferences/congresses Fairs/exhibitions Incentive events Corporate events Source: Own study based on PCB POT database.

100%

Participants

Share of business events and their participants hosted in Krak贸w in 2012-2013 broken down by meeting type

+Share of individual months in the annual total of business events organized in Kraków in 2012–2013

I 5% 7%

10%

9%

10%

11%

5% 4%

11%

12%

9%

6%

II III

2013

IV V

VI VII VIII IX

X 7%

7%

12%

9%

9%

8%

6% 5%

10%

10%

11%

7%

2012

XI XII

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

Source: Own study based on PCB POT database.

100%

+

Duration of business events in Kraków in 2012–2013 by types 1 day

2 days

3 and more days

80% 70% 60% 50% 40%

30% 20% 10% 0% C/C C/C C/C Inter. Inter. Nat.

C/C F/E F/E F/E Nat. Inter. Inter. Nat.

F/E IE IE IE Nat. Inter. Inter. Nat.

IE CE CE CE Nat. Inter. Inter Nat.

CE Nat.

2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 2012 2013 C/C – congress/conference; F/E – fair/exhibition; IE – incentive events; CE –corporate events Source: Own study based on PCB POT database.

+ 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 with special focus on the key parameters:  GDP  Employment (annual FTEs)  Salaries  Taxes and levies

KRAKÓW

+

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 Krak贸w;

+

Primary data taken from Cracow Convention Bureau of the Municipal Office of Kraków – MICE tourism in Kraków research (years 2008-2011)

Secondary data taken from Central Statistical Office of Poland

Primary data taken from Poland Convention Bureau POT (Polish Tourism Organization) years: 2012 and 2013

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 pilot surveys (16 business meetings)

Secondary data taken from Statistical Office in Kraków

Used data

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)

+

Research process

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 Krak贸w; 5) plus Creative industries and other activities; Group (Sector) Group Group Group Group Group Group Group Group

01 02 03 04 05 06 07 08

Handicraft, retail sale Hotels Restaurants Transport Travel agents, guides Culture Recreation, physical well-being 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 Krak贸w

+

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 Krak贸w in 2013 (in USD per person) Shopping

13

Recreation

28 33

Entertainment

68

31 39

9 13

Culture

95

71 67

21 27 11 15

Transport Food and drinks

86

47 48

Accommodation during the meeting Accommodation before and after the meeting

74

252

121

178

30

76

23

Integrative event Fair admission fee

10

Participation fee USD

226 0

Trade exhibitors

30

60

90

120

Trade visitors

150

180

210

240

270

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 Krak贸w in 2013 incurring expenditure during their stay in the city (broken down by type) 30,91% 32,00%

Shopping 3,64% 4,00% 2,51%

Recreation Entertainment

3,64% 10,40%

Culture

26,40% 29,29% 26,28%

45,24% 45,45%

49,09% 45,60% 53,26%

Transport Food and drinks Accommodation during the meeting

66,80% 78,18% 64,89%

40,80%

Accommodation before and after the meeting

40,00%

1,60% 6,92% 3,64%

Integrative event Fair admission fee

94,55% 83,20%

32,80%

Participation fee

83,45% 0%

Trade exhibitors

10%

20%

30%

Trade visitors

40%

50%

60%

70%

80%

90% 100%

Meetings participants Source: own calculation based on survey results.

Share of exhibitors at fairs in Krak贸w broken +down by type of personal expenditure in the city and the average spending per an exhibitor (in USD) in 2013 1800

1 684

100%

98,18%

90%

1600 1400

80%

1 311

70%

1200

60%

1000

50% 800 600

711 596

506

30%

400 200

20% 9,09%

7,27% 62

0

USD

40%

Employment Fair Handling of additional Agency staff from services Krakow

3,64%

5,45%

1,82% Free tickets Organisation Advertisment Costs of for partners of an event for renting space partners at the fair

10% 0%

Source: own calculation based on survey results.

+ Primary data taken from Cracow Convention Bureau of the Municipal Office of Kraków – MICE tourism in Kraków research (years 2008-2011)

Primary data taken from Poland Convention Bureau POT (Polish Tourism Organization) years: 2012 and 2013

Primary data taken from main surveys (92 business meetings, 1294 entities on the demand and supply sides of the meetings industry)

Secondary data taken from Central Statistical Office of Poland

Used data Primary data taken from pilot surveys (16 business meetings)

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)

+SHARE HELD BY THE MEETINGS INDUSTRY IN SELECTED SECTORS OF THE KRAKÓW ECONOMY IN 2013 Group (Sector) Group 01 Handicraft, retail sale

% share in the group (sector) 13,76%

Group 02 Hotels

76,85%

Group 03 Restaurants

24,18%

Group 04 Transport

12,69%

Group 05 Travel agents, guides

9,00%

Group 06 Culture

22,60%

Group 07 Recreation, physical well-being

16,01%

Group 08 Creative industries and others activities

14,45%

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

+ Research

process

8) a direct impact of meetings industry on the selected sectors of Krak贸w economy was calculated; Terms of impact of the meetings industry on the economy of Krak贸w

Amount in 2013

Employment

8 890 persons

Salaries

USD 58.2 mln USD 18.5 mln

Taxes and levies

+

As we know ……

+

The increase in tourism traffic THE LOCAL ECONOMY a flow of capita development of small and medium enterprises new jobs generated

higher turnovers of local enterprises more money earned by local population more taxes paid to the budget

+

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

+

Research process

9) use multipliers obtained from model: Tourism Economics, calibrated for Kraków’s data; Terms of impact of the meetings industry on the economy of Kraków GPD

USD 329.6 mln

Employment

12 214 persons

Salaries

Taxes and levies

Amount in 2013

USD 97.3 mln USD 27.6 mln

The overall share in the economy of Kraków in 2013 2,37% 3,25% 4,00% 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/kiraport-2014-EN-WEB.pdf

+

Thank you for your attention Agata Niemczyk agata.niemczyk@uek.krakow.pl

Renata Seweryn renata.seweryn@uek.krakow.pl