Business events are often called the ‘golden seam’ of the tourism industry because they bring in so much money. But UTS researchers are finding bigger contributions than just tourism spend.
According to Tourism Australia, 7.3 million business event travellers spent 22.9 million visitor nights in Australia in 2008, and generated $5.7 billion in expenditure. They spent an average of $234 per night – far more than the average traveller at $163.
These are big numbers, but in 2009 the Business Events Council of Australia suggested that impacts from business events in areas such as innovation, education, networking, trade, research and practice are likely to far outweigh the direct financial benefit of the tourism spend.
In early 2010, Business Events Sydney approached academics at the UTS School of Leisure, Sport and Tourism to research the broader contribution of business events. Before this project, business events had typically been looked at in economic terms – particularly the tourism spend associated with them – but we were looking for evidence of other outcomes.
Anecdotal evidence of benefits beyond the tourism dimension had been apparent for some time, but there had been no empirically-based assessments. People involved in the industry supported the idea, but it was not yet possible to quantify the broader benefits.
We adopted a case study methodology, and conducted studies of five business events held in Sydney between 2007 and 2010. The events ranged across different sectors (medical, environment, law, sport/gender).
The people we spoke to – conference organisers, delegates, sponsors and exhibitors – were all full of enthusiasm about the broad range of contributions that business events make to the community.
We clustered the results of the research into six main areas:
- networking, relationships and collaboration;
- knowledge expansion;
- fundraising and future research capacity;
- showcasing the destination and talent of local people;
- educational outcomes; and,
- raising the profile and awareness of the issues around the conference theme.
One case study was the 4th International AIDS Society Conference (22-25 July 2007), which gained a lot of media attention from the issues around HIV/AIDS and AIDS research. A significant immediate outcome was the receipt of a $17.7 million research grant from the National Health and Medical Research Council, which was followed by an $18 million grant from the Bill and Melinda Gates Foundation, which went towards a research project into HIV drug therapy.
Another case study was the IWG World Conference on Women in Sport (20-23 May 2010). An outcome was the Sydney Scoreboard, an online tool that will track the numbers of women in leadership roles in national sporting boards around the world. Apart from the inherent value of the project, the fact that it originated in Sydney reflects well on this city as a destination where initiatives like this are happening.
These two examples show that, apart from potential immediate benefits (funding or reputation), business events can have impacts and contributions that only become apparent over a longer period (such as the results of research and collaboration).
When we started this research, people talked about business events as being capable of delivering these broader outcomes, but the evidence wasn’t yet there to support it.
We’re now working again with Business Events Sydney to do a more quantitative study. The first study revealed what the impacts were, but now we want to measure them in order to give the industry some harder data to work with. Results should be available in mid-2011.
An understanding of the contribution business events make can actually be brought back into the organising of events. The findings can be used to support applications for government investment in events, to guide strategic planning and goal setting, and to put in place strategies to achieve a greater range of outcomes and bigger and better contributions from business events.
The report, A Scoping Study of Business Events: Beyond Tourism Benefits by Carmel Foley, Katie Schlenker, Deborah Edwards and Bruce Hayllar from UTS School of Leisure, Sport and Tourism is available on the Business Events Sydney website.