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

Conference industry: perspectives and development directions of Lviv

Lviv, March 11, 2015

Conference industry: perspectives and development directions of Lviv

Lviv, March 11, 2015

Agata Niemczyk

Renata Seweryn

Tourism Department

Cracow University of Economics

1. Kraków as a tourism destination

2. Kraków as a business tourism

destination

3. Methodology of the influence

of meetings industry on Kraków’s

economy

4. Impact of the meetings industry

on the economy of Kraków in 2013

5. Conclusion

Kraków

as a tourism destination

Source:

http://pl.wikipedia.org/wiki/Stare_Miasto_w_Krakowie#

mediaviewer/File:Krakow_rynek_01.jpg

Source: http://www.bryla.pl/bryla/51,85301,8431541.html?i=4

Source:

http://wyborcza.pl/1,75475,13853942,Pod_znakiem_lwa__Festiwa

l_Kultury_Zydowskiej_odmieniony.html

Source:

http://krakow.dlastudenta.pl/st

udia/artykul/Miedzynarodowy_

Dzien_Otwarty_na_UE,30393.ht

ml

Source:

http://www.sfora.biz/gospodar

ka/Oto-najlepsze-galerie-

handlowe-w-Polsce-g50453

9 900 000

7 250 000

2 650 000

0

1 000 000

2 000 000

3 000 000

4 000 000

5 000 000

6 000 000

7 000 000

8 000 000

9 000 000

10 000 000

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Nu

mb

er o

f to

uri

st g

ues

t

Total number of visitors

Domestic visitors

Foreign visitors

Source: data of research conducted at the request of the City Office, under

the supervision of the Małopolska Tourism Organisation

Kraków

as a business tourism

destination

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/

770 000

570 000

200 000

0

100 000

200 000

300 000

400 000

500 000

600 000

700 000

800 000

900 000

1 000 000

2008 2009 2010 2011 2012 2013 2014

Nu

mb

er o

f to

uri

st g

ues

t

Total number of business visitors

Domestic business visitors

Foreign business visitors

Source: data of research conducted at the request of the City Office,

under the supervision of the Małopolska Tourism Organisation

7,78%

7,86%

7,55%

In 2012 – 1855 group meetings

In 2013 – 3413 group meetings

In 2012 – 286 898 participants

In 2013 – 427 980 participants

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

Source: Own study based on PCB POT database.

Even

ts

Part

icip

ants

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


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


0%

10%

20%

30%

40%

50%

60%

70%

80%

C/C

In

ter.

C/C

In

ter.

C/C

Nat.

C/C

Nat.

F/E

In

ter.

F/E

In

ter.

F/E

Nat.

F/E

Nat.

IE I

nte

r.

IE I

nte

r.

IE N

at.

IE N

at.

CE

In

ter.

CE

In

ter

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

Smith G.V. (1990), The growth of conferences and incentives [in:] Quest M. (ed.), Horwath

Book of Tourism, Macmillan, London, p. 68.

„For our city congress

is like a plane throwing

dollars”

www.krakowimpact.pl

PROJECT CO-FINANCED BY SWITZERLAND UNDER THE SWISS PROGRAMME OF

COOPERATION WITH OTHER EUROPEAN UNION MEMBER STATES

assessment and monitoring of the economic effect of the meetings industry on

the economy of Kraków with the use of good practices from Switzerland

Steering the meetings industry in Kraków:

Krzysztof Borodako – chief

Jadwiga Berbeka

Agata Niemczyk

Renata Seweryn

Methodology

of the influence

of meetings industry

on Kraków’s economy

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)

participants in congresses and other

group business meetings of similar

character (congresses, conferences,

seminars, symposiums, training

sessions, workshops and other corporate

events, incentive events),

visitors to trade fairs and exhibitions,

exhibitors at fairs

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.


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


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

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

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%

Idea of Multiplier economic

effects

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

K = a + b + c,

where:

K – Multiplier economic effects on the area,

a – Direct effects,

b – Indirect effects,

c – Induced effects.

Accommodation Catering,

Entertainment Recreation,

Transportation & other Travel Related Services

Printing/Publishing, Utilities Financial Services, Sanitation

Services, Furnishing & Equipment Suppliers, Security Services, Rental Car Manufacturing, Transportation

Administration, Tourism Promotion, Ship Building, Aircraft Manufacturing,

Resort Development, Glass Productions, Iron/Steel

Food & Beverage Supply, Retailers Business Services, Wholesalers, Computers, Utilities, Manufactures, Housing, Personal Services

T&T

DIRECT

T&T

INDIRECT

T&T

INDUCED

Source: The Comparative Economic Impact of Travell & Tourism,

WTTC, November 2012, p. 4.

Impact of the meetings

industry on the economy

of Kraków’s in 2013

The adjusted value of the GDP for the

meetings industry group in Kraków in 2013

was USD 329,6 mln.

The share of the GDP of the meetings

industry amounts approximately to

2.37% of the GDP of Kraków in 2013.

Employment

Group (Sector)


Group 02 Hotels


Group 04 Transport


Group 06 Culture



TOTAL

Number of

employed*

980

3 163

1 617

768

61

886

182

1 233

8 890


* The number of employed quoted is equivalent to the number of employees in the statistics of the

Statistical Office calculated as full-time equivalent employment.

Having accounted for indirect and induced

effects, the number of employed was

estimated at 12 214 persons for the

entire meetings industry in Kraków.

The overall share of the employment

generated by the meetings industry was

3.25%

of the entire Kraków economy in 2013.

Salaries

Total value of

gross salaries in USD

5 041 015

17 545 119

3 724 018

7 170 752

49 528

9 480 962

147 925

15 043 373

Group (Sector)


Group 02 Hotels


Group 04 Transport


Group 06 Culture



TOTAL


58 202 692

Having taken of account of the indirect and

induced effects, the overall value of net

salaries in 2013 in the entire meetings

industry in Kraków was

USD 97 378 924.

The overall share of the gross salaries

generated by the meetings industry in the

entire economy of Kraków in 2013 was

4.0%.

Taxes and levies

Types of revenue stream entering

the Treasury of the Municipality of Kraków

Corporate Income Tax (CIT)

Personal Income Tax (PIT)

Natural Persons Business Tax paid in the

form of a tax card

Other taxes and levies (including real estate,

vehicle and local taxes)

TOTAL

Amount in USD

155 441.20

14 555 791.83

80 937.16

3 709 771.90

18 501 942.1


Having accounted for the indirect and

induced effects, the overall value of taxes

and levies generated by the meetings

industry in Kraków was estimated at

USD 27 630 686.

The overall value of the taxes and levies

generated by the meetings industry

corresponded to 2.4% of the revenue

of the Treasury of the Municipality

of Kraków in 2013.

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%


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

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