Marketing Birmingham has published results of a KPMG economic study which shows that the events industry in the West Midlands contributes more than £6bn to the regional economy, supports more than 100,000 jobs and generates some £800m tax revenue for the Treasury.
Neil Rami, Marketing Birmingham Chief Executive, said: “This is the first time that economic
research on the region’s events industry has been evaluated on such a large and comprehensive scale. We commissioned KPMG to examine conferences, exhibitions and events in the region with a breakdown specifically for Birmingham. Their research validates what we already suspected about the value of the events industry within Birmingham and the West Midlands, but these results are stronger and healthier than we expected. From the West Midlands total, £2.3bn is spent directly in Birmingham, representing a 77% increase on total visitor spending in Birmingham since last recorded figures by the NEC Group in 1999 of £1.3bn.”
He continued: “This research is a vital benchmark for the current size and financial value of the events industry. We can use it to assess our value of market share and indeed our
competitiveness moving forward. It is independent confirmation that the events industry is now a serious economic driver for the West Midlands and that its national contribution should not be underestimated.”
Rob Bailey, Director of Government Advisory at KPMG, said: “This research provides vital
commercial information on the economic impact of the events sector. It shows where visitors
come from, how long they stay, what they spend their money on and how that income is
dispersed within the city and West Midlands to the benefit of the local economy, suppliers and employees.”
Visitors to events and conferences in Birmingham expenditure is predominately in the leisure
sector with £1bn on accommodation £424m on food and drink, £307m on shopping, £266m on travel, £204m on entertainment and £211m on other expenditure.
The research was jointly funded by Advantage West Midlands. John Edwards, Chief Executive, Advantage West Midlands, said: “Of the region’s 2.3m employees, this burgeoning business sector provides 103,900 jobs across the region including 36,700 in Birmingham alone. After hospitality, finance and professional services, public sector administration and manufacturing this is the fifth biggest employment sector in the city. The events industry provides a range and diversity of full and part time employment that is attractive to a wide spectrum of the community and our local labour pool.”
The largest events industry employer in the region is the NEC Group. Paul Thandi, Chief
Executive, NEC said: “Having the UK’s biggest and thriving events sector outside of London can only be capitalised upon. Last year more than 200,000 events attracted 14 million conference delegates and exhibition visitors to the West Midlands – 4.5 million of whom visited our venues. Much of Birmingham’s progress has been based on the events and hospitality sector, the NEC Group alone generates £1.3bn of business and visitor spend in the city in any one year, and supports the equivalent of 22,000 full-time jobs.”
Ian Taylor, Commercial Director, Marketing Birmingham, concluded: “To attract high profile,
profitable events to Birmingham we work with venue partners on bids, often years in advance,
competing on a global scale to win events that will add real value to the city’s reputation and
bottom line. We have recently worked on joint bids with the International Convention Centre,
which include The Society of Endocrinology conference for next year and Dioxin 2008. This is a competitive marketplace and we are encouraged by Birmingham City Council’s proposal to invest new resources in attracting major events to the city from 2009.”
Neil Rami concluded: “The future challenge faced by Marketing Birmingham and our partner
agencies, is to develop and sustain the region’s events industry and protect these jobs which is why we have commissioned a further report by KPMG. This review will have a national focus analysing some of the critical success factors, such as national strategy and government support. It will be completed early next year.”
Ends
For further information please contact Tracey Saunders, Head of PR & Corporate Affairs,
Marketing Birmingham on 0121 202 5002 or email us.
Notes to editors
- KPMG was commissioned by Marketing Birmingham and Advantage West Midlands to
evaluate the impact of business tourism in the region in terms of direct expenditure,
Gross Value Added (or retained income) and employment. Their study is based on data
provided by a sample of leading West Midlands conference and exhibition venues,
supplemented with KPMG studies, public data and business tourism sources. Their
research was conducted from April to August this year.
- Employment sector figures in Birmingham sourced from the Annual Business Enquiry
2004.
- A variety of major events venues completed questionnaires for this survey, including the
NEC Group, Birmingham Hippodrome, Edgbaston Cricket Ground and Star City.
- Definition of terms.
Direct expenditure – expenditure on a commodity due to an increase in demand for that
commodity.
Indirect expenditure – expenditure on suppliers to support direct expenditure.
Induced expenditure – employees spending their money on goods and services.
Gross Value Added GVA – the difference between output and immediate consumption
(wages and profit.)
Gross direct expenditure is money spent on front line service providers such as hotels,
restaurants and contractors, which includes the following:
- accommodation £1bn
- food and drink £424m
- shopping £307m
- travel £266m
- entertainment £204m
- other expenditure £211m
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