Meetings and Events are Crucial to a Thriving U.S. Economy, New Study Finds
February 22, 2018
As the events industry continues to be tasked with making the case for the value of face-to-face meetings and events, a new report commissioned by the Events Industry Council (EIC) has been released that will not only help the industry drive that case home but also prove what it has long known to be true: the meetings and events sector is critical to a healthy and thriving national economy.
According to the Economic Significance of Meetings to the US Economy, conducted by independent global advisory firm, Oxford Economics, and supported by the Meetings Mean Business Coalition and other industry partners, face-to-face meetings and events play an integral role in bolstering the U.S. economy and key business sectors.
The new report is an update of a 2009 study of the same name.
“Our report illustrates that the meetings and events industry continues to grow across all segments as it contributes hundreds of billions of dollars in revenue to the U.S. economy and supports 5.9 million jobs,” explained Adam Sacks, founder and president of Tourism Economics, an Oxford Economics company, during a Feb. 21 press briefing.
He continued, “Notably in 2016, meetings generated $325 billion of direct spending and $845 billion in business sales. These numbers represent a contribution of $446 billion in GDP and $104 billion of federal, state and local taxes. The total tax impact per household was $879 per U.S. household.”
Data for the report was compiled through a nationwide survey of meeting planners, exhibitors and venues and represents almost 9,000 domestic business travelers, almost 50,000 international air travelers and 11,000 hotels, resulting in research that represents the most comprehensive analysis of meetings sector impacts to date, according to EIC officials.
Key findings from the report include:
- In total, 1.9 million meetings were held in 2016, with 251 million participants. On average, the direct spending associated with 43 meeting participants supported one U.S. job, including both direct and indirect impacts.
- Meetings supported more direct jobs than many large manufacturing sectors, including machinery, food, auto and chemicals, and sustained more jobs than the telecommunications and oil and gas extraction industries.
- The cumulative economic impact of face-to-face meetings and events is hard to deny, with results showing that every dollar spent on face-to-face meetings and events generates an additional $1.60 – or 160 percent – in benefits for the U.S. economy.
- Direct spending on meetings expanded 23 percent between 2009 and 2016, primarily due to increases in the number of meeting participants.
- Business services was the industry most impacted by meetings in 2016, with $196.3 billion in total economic output. The finance, insurance and real estate industry followed with $141.1 billion in total economic output, followed by the manufacturing industry with $92.6 billion in total output.
Other industries that were positively impacted by face-to-face meetings and events include:
- Food and Beverage: Meeting organizers and hosts spent $48 billion to provide food and beverage services at meetings.
- Hotels and Lodging: Meetings generated 300 million room nights annually, representing nearly $50 billion of spending on accommodations.
- Travel and Tourism: Meetings-related travel expenses represented 13.2 percent of total travel and tourism spending in the U.S.
“This new research confirms that our industry plays a critical role in connecting people and bolstering crucial segments of our national economy,” said Paul Van Deventer, president and CEO of Meeting Professionals International (MPI) and co-chair of the MMBC, which is an industry-wide coalition created in 2009 that works to showcase the value that business meetings and events bring to people, businesses and communities.
He added, “The numbers reiterate what anecdotally we always knew to be true – no matter the industry, investing in face-to-face meetings is a smart choice.”
Of the 251 attendees that participated in the 1.9 million meetings and events held in the U.S. in 2016, six million were international attendees who generated $38 billion in meetings direct spending alone.
“While those international participants only generate about two percent of attendance, they represent 11 percent of spending because they tend stay longer and spend a great deal more when they visit the U.S.,” Sackler explained.
These findings underscore the importance of the industry working with the U.S. government to make it easier for international attendees to participate in U.S. meetings and events, he added.
“We’ve seen in the past that Visa policy has not always been conducive to international meeting participants being able to come and join in U.S. meetings, and that’s realized significant cost to the U.S. economy over time,” Sackler said.
He continued, “This research helps to create that foundation to advocate for the importance of those international visitors in particular and to ensure that Visa policies are set up in such a way that international meeting attendees can come without being hindered.”
According to Susan Robertson, executive vice president of the American Society of Association Executives (ASAE) and chair of the EIC, there has been a critical need for information quantifying the significance of face-to-face meetings and business events to the U.S. economy, and the data from the new report will also help support ASAE’s efforts to advocate overall for the importance of face-to-face meetings.
“In the association sector, so much science and education, technology and medicine and health care are advanced by face-to-face meetings, so proving their worth is a part of that advocacy picture that we’re very actively promoting at all times.” Robertson said.
She added, “Hosting an event, convention or trade show brings new revenue to industries across the country. So many people and companies beyond the scope of the events industry itself benefit from its reach.”
To read the full report, please click HERE.
Partner Voices
Less than six months ago, Lisa Messina joined the Las Vegas Convention and Visitors Authority (LVCVA) as the first-ever chief sales officer after leading the sales team at Caesars Entertainment. A 12-year Las Vegas resident, Messina is a graduate of Cornell University’s School of Hotel Administration and serves on MPI International’s board of directors.
TSNN had a chance to catch up with this dynamic leader and talk to her about her vision for the new role, current shifts in the trade show industry, creating more diversity and equity within the organization, and advice to future female leaders.
Lisa Messina, Chief Sales Officer, LVCVA
With Las Vegas becoming The Greatest Arena on EarthTM, what are some of the things you’re most excited about in your role?
Our team was at The Big Game’s handoff ceremony earlier this month, and I couldn’t help but think, “We’re going to crush it next year!”
These high-profile events and venues not only drive excitement, but also provide unmatched opportunities for event planners. Allegiant Stadium hosts events from 10 to 65,000 people and offers on-field experiences. Formula 1 Grand Prix will take place in Las Vegas in November, after the year-one F1 race, the four-story paddock building will be available for buyouts and will also offer daily ride-along experiences that will be available for groups. And, of course, the MSG Sphere officially announced that it will open in September, ahead of schedule, with a U2 residency. It’s going to be the most technologically advanced venue as far as lighting, sound, feel, and even scent, and it will be available for buyouts and next-level sponsorships inside and outside. There’s no ceiling to what you can do when you’re doing events in Las Vegas.
Allegiant Stadium
As the trade show and convention business returns to the pre-pandemic levels, what shifts are you noticing and how do you think they will impact the industry going forward?
Our trade show organizers are very focused on driving customer experience. Most of our organizers are reporting stronger exhibitor numbers and increased numbers of new exhibitors, with trade shows proving to be almost or above 2019 levels. Now our organizers are really doubling down on driving attendance and focusing on the data to provide that individualized, customized experience to help attendees meet their goals and get the best value. Some companies continue to be cautiously optimistic with their organizational spend when it comes to sending attendees, but I think it will continue to improve. As the U.S. Travel Association makes more progress on the U.S. visa situation, we also expect a growing influx of international attendees.
What are some innovative ways the LVCVA helps trade show and convention organizers deliver the most value for their events?
We focus on customer experience in the same way that trade show organizers are thinking about it. We got rave reviews with the West Hall Expansion of the Las Vegas Convention Center (LVCC), so over the next two years, we will be renovating the North and the Central halls, which will include not just the same look and feel, but also the digital experiences that can be leveraged for branding and sponsorship opportunities.
Vegas Loop, the underground transportation system designed by The Boring Company, is also a way we have enhanced the customer experience. Vegas Loop at the LVCC has transported more than 900,000 convention attendees across the campus since its 2021 launch. Last summer, Resorts World and The Boring Company opened the first resort stop at the Resorts World Las Vegas , with plans to expand throughout the resort corridor, including downtown Las Vegas, Allegiant Stadium and Harry Reid International Airport. The LVCVA also purchased the Las Vegas Monorail in 2020, the 3.9-mile-long elevated transportation system that connects eight resorts directly to the convention center campus. This is the only rail system in the world that integrates fares directly into show badges and registration. For trade show organizers, these transportation options mean saving time, money and effort when it comes to moving groups from the hotels to LVCC and around the city.
Also, the more we can focus on building the infrastructure around the convention center, the more it supports the customer experience and ultimately supports our trade show organizers. Scheduled to debut in Q4, Fontainebleau Las Vegas will offer 3,700 hotel rooms and 550,000 square feet of meeting and convention space next to LVCC.
What are some of the plans for advancing DEI (diversity, equity and inclusion) within your organization?
We’re currently partnering with instead of working with a leading consulting firm, to lay the foundation and create a solid DEI plan and be the leader when it comes to DEI initiatives. The heart of that journey with the consulting firm is also talking to our customers about their strategic approaches to DEI and driving innovation in this space.
What are your favorite ways to recharge?
My husband and I have an RV and we’re outdoorsy people. So, while we have over 150,000 world-class hotel rooms and renowned restaurants right outside our doorstep, one of my favorite things to do is get out to Red Rock Canyon, the Valley of Fire, and Lake Mead. Five of the top national parks are within a three-hour drive from Las Vegas, so there’s a lot you can do. We love balancing the energy of Las Vegas with nature, and we’re noticing that a lot of attendees add activities off the Strip when they come here.
Valley of Fire
What advice would you give to women following leadership paths in destination marketing?
I think it’s about being laser-focused on what you want to accomplish; building a team around you that lifts you and helps you achieve your goals; and being humble and realizing that you do it as a group. No one gets this done alone. Thankfully, there are a lot of women in leadership in this organization, in our customers’ organizations, and in this city that we can be really proud of. We’re a formidable force that is making things happen.
This interview has been edited and condensed.
This article is exclusively sponsored by the Las Vegas Convention & Visitors Authority. For more information, visit HERE.
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