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The positive economic impact of The NEC Group on the West Midlands has increased to over £2billion every year, with the business supporting almost 29,000 jobs across the region, it was announced today.

Events and activity across the group’s four venues have generated the estimated sum according to a year-long survey by auditors and tax advisors KPMG.

The report, released today, shows a significant increase in positive impact from the 2004 study which found that The NEC Group generated £1.3 Billion for the regional economy each year and supported up to 22,000 jobs (depending upon the exhibition cycle).

Exhibitions, conferences, concerts and other events were surveyed over the course of 12 months from April 2007 to March 2008.

Over 2,4000 interviews were held across a cross section of events to understand the spending patterns of visitors, exhibitors, technical staff and event organisers in terms of travel, accommodation, suppliers, entertainment and food and drink.

The study used well established methodology to calculate the direct, indirect and induced impact of the 4 million plus users of The NEC Group’s four venues.

The findings estimated;

• Total expenditure as a result of activity at The NEC Group’s venues is £2.05Billion per annum.

• In terms of Gross Value Added this equates to £ 0.7Billion – one percent of the total West Midlands GVA output

• The group supports 28,800 full time equivalent jobs (17,700 direct and 11,100 indirect).

• 70 per cent of visitors to The NEC Group venues come from outside the region – bringing significant business and leisure spend into the West Midlands

• Visitors to The ICC spend the most on accommodation and travel (on average a total of £122), reflecting the type of national and international conferences held. This personal expenditure generates the widest economic impact.

Paul Thandi, Chief Executive of The NEC Group said today: “We have always considered The NEC Group’s contribution to the regional and national economies - and the number of jobs supported - to be amongst our greatest responsibilities.

“To have it confirmed by KMPG that our impact has grown so significantly serves only to reinforce how important it is that The NEC Group remains competitive and successful into the future.

"That is why we have put in place a strategy to grow and develop not only our core business of exhibitions, conferences and events through investment in our venues, services and employees – but also to develop more of a destination at The NEC through the creation of a major leisure and entertainment complex, including a large casino, which will deliver the complete ‘work, rest and play’ environment for our customers.”

“We are a major part of one of the UK’s largest and yet most underrated economic sectors: business and leisure tourism, something that Birmingham and The West Midlands leads the UK in and I am proud of the contribution we are making even in these tough economic times.”

Economist Simon Musgrave, from KPMG, who led the study, commented: "KPMG has been estimating the economic impact of The NEC group for many years and the most recent analysis suggests that it has become even more important to the regional economy over the last few years. It is known that the Group has not stood still and many investments and developments have taken place. Some venues have seen significantly increased visitor numbers and, importantly, the average spend per visitor has grown at all venues leading to a wider impact on the regional economy."

Ian Taylor, Commercial Director at Marketing Birmingham added: “From the BBC Summer Festival to Duran Duran and every type of event in between, the NEC Group is at the heart of a world class events industry in Birmingham.

“Consistently orchestrating the must-see shows, there is no doubt that The NEC Group plays an important role in attracting local, national and international visitors to Birmingham and the wider region.”

Notes to Editors

The NEC Group operates The National Exhibition Centre and NEC Arena in Solihull and The National Indoor Arena and International Convention Centre in Birmingham. The four venues are an important engine for the West Midlands and wider UK economy.

The Group is owned by Birmingham City Council and the Birmingham Chamber of Commerce and Industry with Birmingham City Council receiving all of the financial benefit of NEC's operating performance and bearing the burden of interest charges relating to its debts. For further information please visit the company’s website at www.necgroup.co.uk.

KPMG is one of the largest professional services firms in the world, employing over 123,000 people in a global network of member firms spanning over 145 countries. KPMG has three lines of services, an audit, tax service and advisory service.