24 February, 2015

Business events, Australia’s cash cow

Business events across Australia pumped in $23.1 billion in total economic contribution in 2013-14, further cementing its place as a leading sector in the country.

The report, generated by Ernst & Young for Business Events Council of Australia (BECA), found 37 million people attended more than 412,000 business events last financial year, generating $28 billion in direct expenditure, $13.5 billion in direct value added and employing 179,357 in direct jobs. It also marked the first time the report was commissioned in 10 years.

The study, titled The Value of Business Events to Australia, showed business events to Australia is highly significant when directly compared to “big ticket” events with the number of business events equating to 8 times the attendance at Sydney 2000 Olympics Games, or 530 Australian Open tournaments.

“Business events are an economic powerhouse,” BECA chairman, Matthew Hingerty said.

“The report gives strong evidence the power of our industry, however, on a world stage, we are losing market share. We believe that the business events sector is the ‘sleeping giant’ of the Australian economy. With the end to the mining boom and the decline in manufacturing, the sector has the ability to be a leading force for Australia’s future prosperity.”

Hingerty made the remarks in reference to Australia slipping from 13th in 2012 to 16th in 2013 in the International Congress and Convention Association (ICCA) rankings, and urged the government to “work together” to ensure the business events sector in Australia was leveraged internationally and domestically.

The Association of Australian Convention Bureaux (AACB), a member of BECA, also commented on the report further highlighting the significant contribution of business events to the Australian economy.

“The Australian business events sector is now armed with a strong case warranting recognition and support by all levels of government. These important and complimentary findings also provide further backing to the Federal Government’s recent announcement of a new framework to attract business events to Australia,” AACB president, Lyn Lewis-Smith said.

The share of international delegates also went up three-fold in the total meeting and convention market over the last decade, the EY study found.

“This increase is significant to Australia,” Lewis-Smith said.

“International business events and their delegates play a very important role by bringing new money into the country and offering trade and investment opportunities that wouldn’t otherwise occur.”

“The high yielding economic and strategic legacies resulting from business events continue long after the event has been held. Business events also play an integral part in contributing to the visitor and knowledge economies, helping Australia achieve its Tourism 2020 targets.”

“With the growth potential of Asian markets, government support is essential to ensure convention bureaux are in the best position to identify, bid for and win business events that align with national priority areas and better connect industry, academia, government and the private sector.”

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