a. niemczyk and r. seweryn - influence of meetings industry on the economy of krakow
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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
Source: Own study based on PCB POT database.
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
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.
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
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
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
GDP
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 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
TOTAL
Number of
employed*
980
3 163
1 617
768
61
886
182
1 233
8 890
Source: Own study based on survey results and on the data obtained from the Statistical Office in Kraków.
* 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 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
TOTAL
Source: Own study based on survey results and on the data obtained from the Statistical Office in Kraków.
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
Source: Own study based on survey results and on the data obtained from the Statistical Office in Kraków.
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%
Source: Own study based on survey results and on the data obtained from the Statistical Office in Kraków.
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