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Universities as Events Organizers: Economic Impact and Importance as Business Tourism Authors: Jordi Sardà Eva Martín ATE 2009

Index ATE 2009 Introduction Business tourism Events organized by UdL Economic impact Conclusions

Economic impact by event organization ATE 2009 Extensive literature on impact achieved by event organization Literature on economic impact generated by ordinary activity at universities No studies focussing on the big significance of events organized by universities

University of Lleida (UdL) ATE 2009 Medium-small size university About 9,000 students in seven faculties Located in northeastern Spain

University of Lleida ATE 2009 The event expenses are covered by Registration fees Contributions from private companies Public funding

Public funding ATE 2009 Why should the public institutions fund the events organized by University of Lleida?

Benefits ATE 2009 Social benefits Good reputation Contribut to enlarge global knowledge New influx of tourist for professional reasons Economic benefits?

Main purpose ATE 2009 Analyzing the economic profit generated by organizing scientific and academic events at UdL And to see whether these benefits compensated the investment made by public institutions

Business Tourism ATE 2009 Also known as a MICE Industry Europe is the continent hosting the largest number of meetings Benefits in the host place Business tourist expends much more than other kind of tourists Useful as a marketing tool Infrastructure development

Business Tourism in Lleida ATE 2009 Progress in hosted events

Business Tourism in Lleida ATE 2009 Progress in event attendance

Events organized by UdL ATE 2009 Attract people from all over Catalonia, Spain and the entire globe They will later consume in the city and bring in economic profits

Events organized by UdL ATE 2009 Classification by type: Conferences Workshops or symposia Scientific meetings

Events organized by UdL ATE 2009 Classification by field: Health and Medicine Technology Social Sciences, Economics, Law and Education Language and Literature

Health and Medicine ATE 2009 27.3 % total events Most national tourists Funding by private companies

Social Sciences, Law, Economics and Education ATE 2009 47.3 % total events Most regional tourists

Technology ATE 2009 18.2 % total events Most international tourists

Language and Literature ATE 2009 7.3 % total events Various origins

Events organized by UdL ATE 2009 Only 3.2% of event organizer declined to provide the attendances origin, the revenues and the expenses The rest provide all the information

Revenues Event Organization ATE 2009 100.0% 1,185,183.46 Total 18.1% 214,557.00 Private 30.1% 357,105.24 Public 51.8% 613,521.22 Registration Percentage Total Source

Benefit ATE 2009 The economic benefits come from the money expended in Lleida by participants of the events

Benefit ATE 2009 Estimated by means of secondary sources Report on business tourism demand in Lleida (Turespaña)

Expenses by tourists ATE 2009 74.76 euros

Incomes ATE 2009 Three scenarios Most favorable (MFE) Intermediate (IE) Less favorable (LFE)

Net results ATE 2009 229,106 276,865 301,534 317,511 372,145 381,233 Net result 240,804 216,700 240,804 216,700 240,804 216,700 Public Financing 469,910 493,565 542,338 534,211 612,949 597,933 Income 2007 2006 2007 2006 2007 2006 Less Favorable Scenario Intermediate Scenario Favorable Scenario

Net results ATE 2009 1.95 2.25 2.55 Year 2007 2.28 2.46 2.76 Year 2006 Less Favorable Scenario Intermediate Scenario Favorable Scenario

Net results ATE 2009 Yes, the benefits compensate the investment made by public institutions

Economic Impact ATE 2009 Input Output Metodology Measure the capacity of generating benefits by the organization of an event

Economic Impact ATE 2009 (Thousands euros) 2007 2006 LFE IE MFE LFE IE MFE 1,184.16 1,269.89 1,353.48 1,135.25 1,136.95 1,258.74 Induced Effects 2,549.71 2,740.90 2,927.33 2,458.98 2,519.94 2,734.27 Total Effects 409.49 442.52 474.75 399.83 418.44 447.26 Indirect Effects 956.06 1,028.49 1,099.10 923.90 964.55 1,028.27 Direct Effects

Impact distribution among sectors ATE 2009 17.26 Real Estate and Entrepreneurial Services 15.12 Others 6.61 Transports and Communications 11.34 Commerce 32.94 Hotel Management 100.00 Total 16.73 Manufactured Products Total % TIO Sectors Cat 2001

Economic Impact ATE 2009 Simple multiplier 1.43 Large multiplier 2.66

Conclusions ATE 2009 To cover the event expenses public funding is needed Why should public institutions support these events? Economically feasible generating a high yield of 250%

Conclusions ATE 2009 The events organized directly by UdL represent: 10% of total events in the city 11-13% of total attendees at meetings of Lleida 16-18% of total economic impact of business tourism of the city

Conclusions ATE 2009 Events organizes by UdL are more numerous than meetings organized by other actors in the city The economic impact is higher also because the duration is longer

Conclusions ATE 2009 This paper may serve as a decision tool for local governments to decide to invest or not to invest in events organized by UdL The results could be extrapolative to other events organized by other actors as Universidade Lusíada

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