The Value of Meetings

If the results of the latest research are anything to go by, there’s nothing small about business events.

Organising and running conferences, seminars, exhibitions and company events is often exacting and sometimes lonely work for the organiser, despite being surrounded by suppliers and co-workers. There’s a lot of responsibility and you’re only as strong as your weakest link. But take comfort in the fact you’re not alone. Meetings are big business and although it is the big international conferences that attract interest and prestige, the reality is that international visitors only account for one per cent of the delegates to Australian meetings and corporate events each year.

A new study has found that business events make a huge contribution to the Australian economy, generating an annual expenditure of $17.36 billion and creating 214,000 jobs.

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EXTENSIVE RESEARCH

The recently released National Business Events Study provides the first comprehensive insight into the value of the Australian business events industry, including meetings, conferences, exhibitions and incentive travel. The study found that more than 316,000 business events were held across the nation in 2003, involving 22.8 million participants. Dawsons Venue Selections would undoubtedly have played its part in the venue selection of countless thousands of these.

Chairman of Tourism Australia and former deputy prime minister, Tim Fischer, says, “People don’t regard business visitors as sexy as holiday-makers, but the truth is, they spend a lot more per person and make a huge contribution to the Australian economy. And that’s pretty appealing to me.”

Fischer says the study shows that the average daily expenditure of an international meeting or conference delegate was $554 – almost six times the $94 average daily spend of international tourists.

INTERNATIONAL CONTRIBUTION

Fischer adds that international business accounted for $1.86 billion of overall business events expenditure in 2003, with domestic business events accounting for $15.5 billion. While domestic business events generate more expenditure, it is the international market that delivers the best yield and holds the most potential for growth.

According to Fischer, the report is the first document to examine the contribution Australia’s growing incentive travel industry makes to the business events sector. “More than $585 million was spent on incentive business alone in 2003, with $539 million of this figure generated by international incentive visitors,” he says, emphasising that the benefits of business events extended far beyond expenditure. “Face-to-face business events meetings are not just about immediate returns, but are crucial for trade, research, education and long-term business relationships.”

PERSONAL TOUCH

Melbourne Exhibition and Convention Centre chief executive, Leigh Harry, observes that 10 years ago many thought video conferencing and other IT developments would reduce the need for business events. “This report shows that nothing could be further from the truth. Despite new technology and adversities such as the SARS outbreak and the 9/11 terrorism attack, the need to meet face-to-face remains fundamental to the business sector,” says Harry. “This report puts a meaningful figure on the value of business events and demonstrates what the sector is worth and what it contributes to the national economy.”

Other key findings of the report include:

• The estimated number of meeting and conference delegates in 2003 was 19.9 million.
• In 2003, an estimated 8.5 million visitors attended exhibitions throughout Australia.
• Delegates’ main reasons for attending a conference were
the business/educational content, followed by networking opportunities.
• Single or part-day events accounted for 218,000 events, while multi-day events accounted for 98,000.
• International meeting and conference delegates spent an average 7.3 nights in the host city and an average of $3,526 per trip.
• 46 per cent of international conference delegates took a pre or post-event tour averaging 7.6 nights.
• Key event types during 2003 were corporate events, which attracted 14.8 million delegates, followed by association events (8.3 million) and government events (5.3 million).
• NSW accounted for 27 per cent of all business events, followed by Victoria (25 per cent), Queensland (20 per cent), Western Australia (12 per cent), ACT and SA (each 6 per cent), Tasmania (3 per cent) and Northern Territory (1 per cent).
• An estimated 1.42 million square metres of floor space was sold for 300 large exhibitions in 2003, with $137.7 million spent staging the events.
• The key sectors involved in hosting incentive groups were pharmaceutical (13 per cent), electrical (9 per cent) and IT (8 per cent), and the average number of participants per event was 194.