When you live and breathe the event world as we do, we understand the power behind face-to-face meetings. But we know that only some may realize how powerful these connections are. The Events Industry Council (EIC) recently partnered with Oxford Economics to measure the full scope and significance of the business events industry. And the survey results will astound you! So, we’re sharing the survey’s best takeaway statistics to help explain the economic impact of business events to you.
First, what is the business events industry?
What is the Business Events Industry?
The business events industry refers to the industry that includes meetings, conventions, exhibitions, incentives, and special events. It focuses on the corporate business sector and doesn’t include social or wedding events.
How is the Economic Impact Survey on Business Events Measured?
To understand the survey, you need to know how it is measured. The survey measured two main components to get the best temperature check on the economic impact of business events. The primary research came from a global study. EIC and Oxford Economics tapped more than 1,600 international event organizers, venues, destination marketing organizations, and suppliers. Their feedback was foundational in determining real-time statistics. Secondary research came from detailed data analysis of business events, trade show activity, economic models, and business forecasts. When combined, the information gave the big picture of the influence of business events.
Important Terms in the Business Events Economic Impact Survey
Before we dive in, we created a helpful glossary of a few terms to help you understand the broad strokes of the information.
Business Event:
The survey defines a business event as more than 10 participants gathering for more than four hours in a contracted venue. The survey did not include any social, educational, or recreational activities.
How are Economic Impacts Measured:
The economic impact defines the activity supported by the business events’ direct spending. It includes direct influences, such as any event planning and production jobs. It also has indirect impacts, like supply chain impacts and purchases from other business sectors.
Direct Spending:
Direct spending refers to the spending needed to plan and produce an event. It includes business travel, exhibit costs, event production, and more.
Catalytic Effects:
Catalytic effects refer to the big-picture influence. They are the broader impacts that come from business events. They refer to networking, new leads, education, and best practice exchange.
Now that we understand some survey jargon let’s get to the numbers.
Direct Economic Impact of Business Events by the Numbers
The economic impact of business events is staggering. Based on the survey results, business events involved more than 1.6 billion individuals from more than 180 countries. Business events powered more than $1.15 trillion in direct spending. It supported more than 10.9 million jobs globally. And it generated $662.6 billion of direct gross domestic product (GDP). But that is simply direct spending! When considering the ripple effect, the impact zone is even more comprehensive.
When face-to-face meetings happen, it impacts more than $2.8 trillion in business sales. It is responsible for over 27.5 million jobs and more than $1.6 trillion in GDP. The significance of the business events sector GDP ranked as the 13th largest economy globally. These are monumental figures!
What is the Broader Economic Effect of Business Events
It’s easy to be dazzled by the above numbers. But the economic impact ripple effect of business events isn’t complete. Broader impacts, known as catalytic effects, are the intangible fingerprints left by meeting in person. These refer to the nuances of networking, the exchange of knowledge, obtaining new skills, and business collaboration. These subtle connections have the residual ability to influence business and future sales as time goes on.
Catalytic effects are challenging to quantify, though they exist. It means that the true significance of business events is even more than we can measure or imagine.
What is the Current Barometer & Outlook for Business Events?
It would be impossible to speak about events today if we didn’t acknowledge the destruction that COVID-19 did to it. The numbers of today’s business events’ economic impact are rooted in the last few years.
A portion of the recent study focuses on the EIC Global Barometer. The Barometer is a quarterly temperature check that tracks events’ global recovery data. Things like room blocks and RFP requests provide valuable insight into the economic trajectory.
Based on their studies, our industry was dramatically wounded in 2020. Two-thirds of global direct spending was lost, resulting in more than $1.9 trillion in lost sales over three years. While 2022 saw a recovery, the industry was still bearing a 29% loss, including more than 16 million jobs in that timeframe.
Because of the past, this latest report is so bolstering. According to the survey, global business event spending should recover to 2019 levels by 2024.
We Know the Power of Face-to-Face
We’ve always known the importance of face-to-face meetings and are thrilled to contribute to this massive sector in the global economy. To have the opportunity to help businesses create powerful connections is what drives our team every day. If you need help planning your next important meeting, contact us today. We’ll help you contribute your piece of the big-picture puzzle.
