Nr_17 Trade fairs boost annual output of German economy by EUR 23 billion Exhibitors invest an annual EUR 7.8 billion in domestic trade fair participation ifo survey on the economic impact of trade fairs commissioned by AUMA 28.10.2009 Every year trade fairs boost German economic output by EUR 23.5 billion. They also ensure that 226,000 people have full-time jobs. Furthermore, trade fairs generate EUR 3.8 billion in taxes at federal, state and municipal level. Thus, besides fulfilling their main purpose of providing a marketplace and transparency for supply and demand in individual sectors, trade fairs also have a considerable overall economic impact. This was underlined by Dr. Peter Neven, Managing Director of the Association of the German Trade Fair Industry (AUMA), speaking at the presentation of a survey on the overall economic impact of trade fairs in Germany which AUMA had commissioned the ifo-Institute to carry out. The most important indicator reflecting the overall economic impact is spending by exhibitors from Germany and abroad at German trade fairs. This amounted to EUR 7.8 billion for an average trade fair year in the period of 2005 to 2008. At 30.8 %, stand construction, transport and other stand related services make up the largest part of spending, followed by stand rental and additional charges (20.7 %), staff (16.3 %), accommodation and catering (12.6 %), and travel costs (10.2 %). Dr. Neven: "What is clear is that spending on trade fair participation consists of numerous, relatively minor individual cost categories, which can also be individually controlled, particularly in times requiring cost-cutting." Spending on national and international trade fairs comprises EUR 6.4 billion of exhibitors’ overall investment (EUR 7.8 billion). It also means that this category of trade fair has a substantial regional and overall economic impact, in particular because accommodation and travel costs are above average. Accordingly, it means that regional trade fairs, which frequently attract local exhibitors and visitors, have a lower economic impact on the respective region. Trade fair visitors spend an annual EUR 3.8 billion Figures for visitors are similar: Money spent by visitors attending national and international trade fairs comprises EUR 2.9 billion of overall visitor spending (EUR 3.8 billion), as they often travel long distances and frequently stay for one night or more, particularly if they are guests from abroad. At 23.0 % accommodation makes up the largest part of visitor spending, followed closely by travel costs (22.5 %) and catering (20.9 %). At EUR 7.8 billion and EUR 3.8 billion respectively, direct exhibitor and visitor spending totalled approximately EUR 12 billion, including investments by trade fair venues, which from 2005 to 2008 represented an average in excess of EUR 400 million per year. Direct spending by exhibitors, visitors and trade fair venues impacts almost all sectors of the German economy. Income as a result of this effect, a large part of which is spent again, must also be taken into account. Thus according to calculations by the ifo Institute the result is a boost in output double that of direct spending, a total of EUR 23.5 billion. Trade fairs ensure 226,000 people have jobs The impact on the employment market is that 226,000 people have full-time jobs, nearly half of whom (117,000) work in services. However, commerce, transport, the news industry (52,000 jobs) and manufacturing (47,000) also benefit considerably from trade fairs held in Germany. During the survey the ifo-Institute drew mainly on research examining the regional economic impact on individual cities hosting trade fairs, which ifo had carried out in previous years using almost identical methods. According to Horst Penzkofer, project manager at the ifo-Institute, the survey was based on questionnaires answered by 15,500 exhibitors and 71,000 visitors. This made it possible to outline typical spending behaviour by exhibitors and visitors which was projected onto trade fairs for which no questionnaires were available. Based on this data, spending by exhibitors and visitors was calculated first. ifo then determined the overall economic impact using an integrational macro-economic model, a so-called input-output analysis. Press contact: Harald Koetter, phone: +49/30/24 000-140, fax: +49/30/24 000-340, email: h.koetter@auma.de Figures gb_gesamtwirtschaftl1824C8.eps Veröffentlichung kostenfrei Beleg erbeten / Publication free File copy requested Copyright © 2009 AUMA_ Ausstellungs- und Messe-Ausschuss der Deutschen Wirtschaft e.V. Last update: 10/2009