The AIPC / Ipsos Economic Impact Calculator
for Convention Centres:
What it is and How it Works
Background
Members of the Meetings Industry are generally in agreement that there is an
urgent need to be able to demonstrate the values this industry generates in order
to ensure ongoing community and government support and investment. One of the
most easily calculated measures is the economic impact generated by organizer
and delegate spending associated with meetings, conventions and exhibitions, and
as a result it has become a priority in many areas. Such calculations were a matter
of particular urgency for convention centres, because most needed to be able to
deliver a credible estimate of economic impact generated by their facility as a
supplement to their direct revenue / financial figures in determining ROI for facility
investment – in fact, for many, it was an owner requirement.
This type of calculation has been performed for a number of countries in recent
years including Canada, the US, Mexico and Denmark, with others such as the UK
in progress. However, the resulting figures were of very limited use to centres that
needed figures specific to their particular facility rather than an entire country. In
addition, there were other challenges:
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There was no “standard” model that would generate consistent data that
would be comparable with other facilities;
Stand-alone studies were often very costly, which in turn affected
repeatability;
There were issues around the consistency of data generated because of the
variations in inputs and assumptions inherent in the wide variety of models;
Because spending patterns and cost of living vary widely in different parts of
the world, original research had to be conducted for each location rather
than relying on “average” spend figures which had been in general use for
many years..
AIPC/Ipsos Economic Impact Calculator
As a result, centre-specific calculations tended to be costly, inconsistent and often
lacking in credibility with their intended audiences.
The AIPC Program
With these points in mind, AIPC engaged IPSOS, an international market research
company with some considerable experience in this area and asked them to
recommend an approach that could be of use to our members. What emerged was
the idea of creating a model that centres could “plug in” data gathered in a defined
and consistent way which would in turn generate a total spend figure for that
particular facility.
How it Works
The program takes the form of a standardized “calculator” supported by an
extensive guidebook that covers everything from data gathering within recognized
statistical parameters to sample sizes, sources of input and categories of business
to be sampled. This latter creates a sampling “grid” to ensure statistical validity and
will be carried out with the support of Ipsos to assure the credibility of the final
result.
The calculation is essentially one of surveying the spending patterns of organizers,
delegates, exhibitors and suppliers in order to capture all the spending associated
with the event. The results are entered proportionately to the event load of that
facility for the relevant period to generate the final resulting total spend. The same
data can then be entered into a locally maintained Input / Output model of the sort
maintained by many jurisdictions in order to be able to create a locally calibrated
total economic impact figure (Industry Output) which compares with other industry
sectors and identifies component elements such as jobs and tax revenues that are
of particular interest to governments..
Data gathered in accordance with the guidelines can then simply be entered into
the spend calculator (which IPSOS will maintain under agreement with AIPC) to
arrive at a number which would be both credible and consistent across all member
centres. This will be a free service to members; however, the actual data gathering
(according to the prescribed template and using forms provided by Ipsos) will be
the responsibility of the centre itself, which it can address either by doing this work
themselves or contracted it out to a third party under the direction of the program
guidelines.
AIPC/Ipsos Economic Impact Calculator
Program Outline | Oct 2012
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AIPC/Ipsos Economic Impact Calculator
Timeline
Once the pilot program has been completed and any final adjustments made, the
model will be made available to all AIPC members for both their reference and use.
It is anticipated that the pilot program, which involves five centres around the world
to ensure a variety of regional conditions will be completed within 8-10 months. In
the meantime, members are free to review the guidebook that has been prepared
for the use of the model and begin the advance preparations for their own
programs.
Conclusion
The key to the credibility of economic impact figures is the use of a well-structured
program designed by an internationally recognized and accredited authority,
applied consistently. The AIPC / Ipsos EI Calculator offers all of these benefits
along with a level of ease of use that has not been available until now. It will offer
centres a new way to demonstrate their value to the broader community without
the challenges associated with having to formulate or access such a model
individually as has been the case in the past.
AIPC represents a global network of over 170 leading centres in 54 countries with the active
involvement of more than 850 management-level professionals. It is committed to
encouraging and recognizing excellence in convention center management, based on the
diverse experience and expertise of its international representation, and maintains a variety of
educational, research, networking and standards programs to achieve this. AIPC also celebrates
and promotes the essential role of the international meetings industry in supporting economic,
academic and professional development and enhancing global relations amongst highly diverse
business and cultural interests.
AIPC Members are purpose built facilities whose primary purpose is to accommodate and service
meetings, conventions, congresses and exhibitions.
AIPC/Ipsos Economic Impact Calculator
Program Outline | Oct 2012
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