National and Regional Impact Report. Canadian Economic Impact Study 3.0 (CEIS 3.0), 2012 Base Year

Transcription

1 National and Regional Impact Report Canadian Economic Impact Study 3.0 (CEIS 3.0), 2012 Base Year

2 National and Regional Impact Report Canadian Economic Impact Study 3.0 (CEIS 3.0), 2012 Base Year Economic Contribution of Business Events in Canada: 2012 Highlights The 585,000 business events held in Canada during 2012 resulted in $29 billion of attributable spending. Meeting participants accounted for 87 per cent of the total attributable spending, with non-participants and Destination Marketing Organizations (DMO) accounting for the remaining 13 per cent. Of the $25.3 billion spent by meeting participants to attend business events, meeting delegates accounted for $21.3 billion and exhibitors for $2.3 billion. Meeting speakers and other attendees together accounted for the remaining $1.7 billion. Combined, non-participants and DMOs accounted for $3.8 billion in spending. The bulk of this spending, $3.7 billion, was provided by non-participants through financial support provided by clients, sponsors, hosts and other contributing partners. In total, the economic contribution of business events activity to Canada s GDP is estimated at $27.5 billion in This is approximately 1.5 per cent of Canada s total GDP. Overall, business events activity supported over 341,700 full-year jobs in Canada, one for every $85,000 in direct spending. The level of employment supported by business events represents just under 2 per cent of the total employment in Canada. The average wage paid for the 341,700 full-year jobs supported by business events was $50,600. While the most populated provinces tended to benefit most by business events, all regions of the country experienced economic benefits attributed to business events in As a share of the total employment in each province or region, business events in Atlantic Canada and Alberta both registered the highest share of employment, at 2.8 per cent each, with Manitoba/Saskatchewan close behind at 2.6 per cent. The total wages and salaries supported in Canada by business events activity in 2012 is estimated at $17.3 billion, of which $9.2 billion were paid to workers who directly benefited from business event activity. Overall, the average wage paid for the 341,700 full-year jobs supported by business events was $50,600. Overall, international attendees to business events accounted for just over $6.1 billion, or 24 per cent, of the total spending by participants. The travel related portion of that spending alone contributed $5.2 billion to Canada s GDP and supported just under 57,000 full-year jobs. Based on the average spending reported by international attendees from various geographic markets, the largest economic benefits to Canada, on a per attendee basis, came from business event attendees visiting from Australia, China, and Germany (among those markets included in the study). 1

3 1.0 Background 1.1 Overview The primary purpose of this project is to report on business events activity in Canada and to convey its economic contribution to the Canadian economy. This project also goes a step further by capturing and reporting on business events activity at the provincial/regional level and, where feasible, at the metropolitan level. In conjunction, the economic contribution of business events was also projected at the provincial/regional and, where data permitted, the metropolitan level. This report focuses on conveying the economic contribution of business events at the national and provincial/regional level. The introduction and methodology sections of the previous CEIS 3.0 report, Profile of Meetings in Canada: 2012 Base Year, describes in detail the overall study approach, the design of sampling, and data collection plans for the current CEIS 3.0 study. As noted therein, as in the 2006 first prototype study, the CEIS 3.0 results were obtained using an ambitious primary data collection strategy and economic analysis: using the first-of-its kind prototype survey research specifically tailored to capture meetings activity data from both the demand-side constituencies (delegates, exhibitors, and speakers) and the industry supply-side (meeting organizers, venue managers, and destination marketing organizations), and economic modeling that framed the results in a customized Meetings Accounting Framework. The accounting framework is based on, and conceptually linked with how tourism data are officially reported - the Tourism Satellite Account. The economic contribution analysis reveals the direct contribution as well as the indirect and induced impacts of business meetings on the Canadian Economy. Primary research consisted of six online sample surveys of six distinct business meetings related populations: three key demand-side meeting market segments delegates, speakers, and exhibitors; and three supply-side industry constituencies meeting organizers, venue managers, and destination marketing organizations/cvbs. The targeted overall sampling goals of approximately 2,400 completed demand-side surveys for this study represented a significant increased over the sampling goals of the 2006 CEIS study, in order to support MPIFC s objectives of extending the CEIS analysis down to the regional and municipal levels. 1.2 Process to Establish Spending Prior to conducting the economic contribution analysis using input-output based models and methods, spending profiles were produced to represent each of the various sources of business events activity in Canada. The various sources that contribute to business events activity in Canada include participants (delegates, exhibitors, speakers and others), meeting planners, meeting venues, destination management organizations (DMOs), and nonparticipants that provide sponsorships or other financial support. For participants, spending profiles were generated using primary survey data collected from this study. The spending profiles reflect typical average expenditures incurred by type of participant, type of meeting, geographic proximity of the participant to the meeting location, and the location of the meeting itself. The spending profiles were applied against the estimated volume of business events activity and the number of participants. The number of business events was determined primarily by using weighted tabulations of the Venue survey. Meanwhile, the categories of revenues and expenditures associated with business events were provided by the Meeting Organizer survey. The Meeting 2

4 Organizer survey was also used to identify the geographic proximity breakdown of attendees to business events as well as providing a benchmark to adjust meeting participant spending on registration and exhibition fees. The Meeting Organizer survey was also instrumental in determining the extent to which business events relied on non-participant spending. The average spending profiles related to exhibitor displays were captured in the Exhibitor survey. These profiles were analyzed by type of meeting and location of meeting. Once again, the volume of business associated with this activity was determined through weighted tabulations of the Venue survey. After producing appropriate spending estimates to represent the various sources of business events activity, the next step involved the redistribution of spending to the commodity classification system used in Statistics Canada s input-output tables. The tables used in this analysis comprise 470 groups of commodities and 235 industries. The accounting framework used to redistribute participant spending on tourism or tourismrelated goods and services follows the approach and concepts used by Statistics Canada to establish the Canadian Tourism Satellite Account (CTSA). The specific level of spending for each spending category came from the weighted responses to the Meeting Delegate, Exhibitor, and Speaker surveys. The allocation of meeting/registration fees to specific commodity categories involved using the revenue and expenditure breakdowns provided by the Meeting Organizer survey that relate to specific business event categories. While the share of meeting expenditures that went to independent meeting organizers was tracked through the survey, expenditures associated with the efforts of corporate meeting organizers needed to be imputed. The imputation assumed that for corporate meeting organizers, the value of output (meeting organizing) has an equal market value for equal output to that witnessed for independent organizers. The assessment of output was based on the number of meeting participants, by type of meeting, and meeting venue. While the revenues and expenditures of organizing meetings were obtained from the Meeting Organizer survey, the revenues and expenditures associated with running an independent meetings organizer business were not captured. Therefore no production function was available that associates the organizing of meetings within a company whose primary business activity is organizing meetings. The lack of a production function also extends to businesses whose major activity does not include the organizing of meetings. 1 Meanwhile, the production function associated with Meeting Venues were available from the Venue survey. In this case, the derivation of expenses for venues used the results of the survey rather than its closest defined industry in the input-output accounts, that being Lessors of Real Estate. Since input-output based models require that spending be presented in terms of what the producer actually receives, the next step involved converting spending on a purchaser price basis to that of producer s prices. Converting purchaser prices to producer s prices involved accounting for retail, wholesale, transportation, and tax margins. As well, prior to determining the domestic demand for goods and services, a separate adjustment was required to account for direct imports. Once the final adjustments were made, the spending estimates could be simulated using an input-output based model to generate the direct, indirect, and induced economic contribution of business event activity. The specific indicators used to convey the economic 1 To deal with the lack of a production function specifically associated with the function of meeting organizing, we chose to model the activity using the closest defined industry classification in the input-output accounts, that being Facilities and other support services. This industry classification was also used to model the activity associated with DMOs since the industry category includes Convention and Trade Show organizers, NAICS code

5 contribution of business events include GDP, wages, employment, and taxes by source and level of government. For a more technical description regarding the input-output methodology used in this study please see Appendix A. For more details regarding terminology used in this report please see Appendix B. Considering the sample sizes of primary data collected through the various survey instruments, the economic contribution of business event activity is presented using seven provincial regions of Canada: British Columbia, Alberta, Saskatchewan-Manitoba, Ontario, Quebec and Atlantic Canada (New Brunswick, Nova Scotia, Newfoundland, and Prince Edward Island). Note: The data presented in this report may not total due to rounding. 2.0 Business Events Spending - National/Regional 2.1 Business Events Spending by Source - National In order to properly account for the economic contribution of business events activity, it is important not to double-count the level of spending incurred by various stakeholders involved in planning, promoting, hosting, and attending business events. Using a final-demand perspective, it is estimated that business event activity in Canada during 2012 accounted for a total of $29.0 billion in spending. Participants accounted for the bulk of spending at $25.3 billion (87 per cent) while non-participants (those providing sponsorship or other financial support over and above registration fees) accounted for more than $3.7 billion (13 per cent) with DMOs accounting for $53 million (<1 Per cent). Of note, expenditures incurred by meeting planners and meeting venues are already captured by spending and/or financial support provided by participants, non-participants and/or DMOs. As such, adding the revenues and/or expenditures of meeting planners and meeting venues on top of the $29.0 billion estimate would result in double-counting some of the spending related to business events. Table 1: Total Business Event Related Spending in Canada - By Source (2012) Source of Spending Spending Participants $25.3 billion Delegates $21.3 billion Exhibitors $2.3 billion Speakers/Other Attendees $1.7 billion Non-Participants 2 $3.7 billion DMOs 3 $53 million Total Business Event Related Spending $29.0 billion 2 Non-participants include clients, sponsors, hosts and other contributing partners. This definition also includes organization that employ in-house meeting organizers or exhibitors. 3 The financial involvement of DMOs is limited to those specifically devoted to attract and promote business events. 4

6 2.2 Business Events Spending (by Commodity) - National The table below captures the spending associated with business events using an accounting framework that organizes and accounts for business event spending in a manner similar to that used in the 2008 Canadian Economic Impact Study (CEIS 1.0) conducted for the 2006 base year. In this case, the extended tourism satellite accounting framework assigns spending to common commodity groups that are deemed to be specific to the meetings sector, the tourism sector, and other sectors of the economy. This framework also shows the share of demand, or spending, attributed to both participants and non-participants, including DMOs. Other non-participants include meetings sponsors, the clients and/or employers meetings organizers as well as other stakeholders providing financial support to host business events. Similar to the CEIS 1.0, business event related expenditures are divided into six broad categories that comprise tourism and other tourism-related commodities, as well as additional categories associated with meeting commodities and other meeting-related commodities. Table 2 provides the main estimates that should be used when discussing business event demand in Canada for Table 2: Total Business Event Demand in Canada (2012) Category of Expenditure Participants Non-Participants/ DMOs Total Meeting Commodities $4,474,011,310 $3,474,282,541 $7,948,293,851 Registration Fees $4,474,011,310 $4,474,011,310 Other meeting fees and contributions $3,474,282,541 $3,474,282,541 Tourism Commodities $19,519,616,348 $19,519,616,348 Transportation $8,716,510,506 $8,716,510,506 Air $5,702,329,087 $5,702,329,087 Rail $225,468,340 $225,468,340 Other $2,788,713,079 $2,788,713,079 Accommodation $5,924,795,650 $5,924,795,650 Food & Beverage Services $3,715,780,985 $3,715,780,985 Other Tourism commodities $1,162,529,207 $1,265,458,729 Recreation and Entertainment $1,041,580,414 $1,041,580,414 Travel Services $120,948,793 $120,948,793 Total meeting and tourism $23,993,627,658 $3,474,282,541 $27,467,910,199 commodities Other commodities (tourism related) 5 $1,265,458,729 $1,265,458,729 Other commodities (meeting related) 6 $ 315,178,233 $ 315,178,233 Total Business Event Demand $25,259,086,387 $3,789,460,774 $29,048,547,161 5 Other commodities (tourism related) refer to miscellaneous retail purchases made during a trip. In this case, this would also extend to include miscellaneous retail purchases by local attendees of business events. 6 Other commodities (meeting related) refer to booth exhibition expenditures. 5

7 Table 2 shows that meeting commodities account for just under $8.0 billion, or 27 per cent, of all business event-related spending. Of the nearly $8.0 billion spent on meeting commodities, registration fees accounted for nearly $4.5 billion, while sponsors, DMOs and other stakeholders contributed a further $3.5 billion. Non-participants also spent $315 million on other commodities deemed to be meeting related. This additional spending relates to costs incurred by businesses to cover exhibitor-related setup costs. 2.3 Business Events Spending (by Source) - Western Canada It is estimated that business event activity in British Columbia and Alberta accounted for $4.8 billion and $6.1 billion respectively, in spending during Collectively within Manitoba/ Saskatchewan, business events spending accounted for $2.9 billion that same year. While participant spending was highest in Alberta, non-participant and DMO attributed spending was highest in British Columbia. Across all provinces and regions in Western Canada participant spending accounted for the largest share of business event related spending. Table 3: Total Business Event Related Spending in Canada - Western Canada (2012) Source of Spending British Columbia Alberta Manitoba/ Saskatchewan Participants $4.1 billion $5.6 billion $2.8 billion Non-Participants $0.7 billion $0.4 billion $0.1 billion DMOs $10.6 million $8.8 million $3.4 million Total Business Event Related Spending $4.8 billion $6.1 billion $2.9 billion 2.4 Business Events Spending (by Commodity) - Western Canada Table 4 provides a breakdown of the total spending made by both participants and nonparticipants (including DMOs) on meeting commodities, tourism commodities, and other commodities. The breakdown of spending reveals that, among provinces in Western Canada, spending on meeting commodities was highest in British Columbia while spending on tourism commodities was highest in Alberta. 6

8 Table 4: Total Business Event Demand in Western Canada (2012) Category of Expenditure BC AB Man/Sk Meeting Commodities $1,478,296,483 $1,286,284,334 $541,092,196 Registration Fees $773,353,264 $921,740,035 $462,157,282 Other meeting fees and contributions $704,943,218 $364,544,299 $78,934,914 Tourism Commodities $3,088,322,568 $4,449,559,414 $2,242,893,726 Transportation $1,358,241,521 $2,081,833,323 $964,321,027 Air $908,506,553 $1,502,178,449 $648,542,038 Rail $15,325,510 $8,664,804 $39,807 Other $434,409,457 $570,990,070 $315,739,181 Accommodation $911,364,343 $1,316,125,919 $738,973,918 Food & Beverage Services $586,564,812 $828,752,967 $378,174,026 Other Tourism commodities $232,151,892 $222,847,206 $161,424,754 Recreation and Entertainment $201,991,818 $211,847,054 $147,568,146 Travel Services $30,160,074 $11,000,152 $13,856,608 Total meeting and tourism commodities $4,566,619,051 $5,735,843,748 $2,783,985,922 Other commodities (tourism related) $210,015,680 $278,370,327 $124,593,467 Other commodities (meeting related) $56,997,625 $46,302,809 $40,387,854 Total Business Event Demand $4,833,632,356 $6,060,516,885 $2,948,967, Business Events Spending (by Source) - Central/Atlantic Canada It is estimated that business event activity in Ontario and Quebec accounted for $8.7 billion and $3.9 billion respectively, in spending during Collectively in Atlantic Canada, business events spending accounted for $2.4 billion. While participant spending in Ontario was significantly higher than in Quebec, non-participant spending was only slightly higher. Table 5: Total Business Event Related Spending in Central/Atlantic Canada (2012) Source of Spending Ontario Quebec Atlantic Participants $7.5 billion $2.9 billion $2.1 billion Non-Participants $1.1 billion $1.0 billion $0.3 billion DMOs $18.0 million $8.7 million $3.4 million Total Business Event Related Spending $8.7 billion $3.9 billion $2.4 billion 7

9 2.6 Business Events Spending (by Commodity) - Central/Atlantic Canada Table 6 provides details of the total spending made by both participants and non-participants (including DMOs) on meeting commodities, tourism commodities, and other commodities in Central Canada and Atlantic Canada. The breakdown of spending reveals that, with the exception of rail transportation, spending on tourism commodities was significantly higher in Ontario than both Quebec and Atlantic Canada. While spending on meeting commodities were also highest in Ontario, the spending on other meeting fees and contributions made by non-participants was also very high in Quebec. Table 6: Total Business Event Demand in Central/Atlantic Canada (2012) Category of Expenditure Ontario Quebec Atlantic Meeting Commodities $2,541,941,463 $1,474,177,346 $611,043,751 Registration Fees $1,472,224,323 $465,508,956 $363,569,173 Other meeting fees and contributions $1,069,717,140 $1,008,668,391 $247,474,578 Tourism Commodities $5,631,840,870 $2,255,772,473 $1,653,466,481 Transportation $2,335,071,590 $950,764,232 $869,058,324 Air $1,558,202,540 $565,174,302 $427,324,072 Rail $47,601,190 $41,469,473 $111,630,358 Other $729,267,860 $344,120,457 $330,103,894 Accommodation $1,743,008,954 $769,586,713 $440,206,830 Food & Beverage Services $1,163,454,148 $432,231,431 $296,384,024 Other Tourism commodities $390,306,178 $103,190,097 $47,817,302 Recreation and Entertainment $341,086,193 $91,644,740 $42,650,687 Travel Services $49,219,985 $11,545,357 $5,166,616 Total meeting and tourism commodities $8,173,782,333 $3,729,949,819 $2,264,510,232 Other commodities (tourism related) $403,537,953 $145,043,948 $96,525,388 Other commodities (meeting related) $87,780,946 $38,613,749 $45,095,250 Total Business Event Demand $8,665,101,232 $3,913,607,517 $2,406,130, Economic Contribution of Business Events - National 3.1 Economic Contribution of Business Events - National This section reports on the economic contribution of business events at a national level, using results produced using a bottom-up approach. Specifically, national results represent the combined results achieved by conducting an economic contribution analysis for each province and territory where business event activity was found. This approach was used to ensure that the national level figures properly reflect the level of business events activity occurring in each province and territory as well as ensuring that differences among provincial tax rates, average earnings and other factors are properly accounted for. Readers can refer to Appendix C to see a more detailed industry breakdown of the economic contribution of business events at both the national and provincial/regional levels. 8

10 3.1.1 Employment - National In total, business events activity in 2012 supported over 341,700 full-year jobs in Canada. Compared with the initial level of spending associated with business events, the analysis suggests that one full-year job is supported for every $85,000 in direct spending on business events. The analysis also reveals that of the total jobs supported, nearly 60 per cent, just over 201,000 full-year jobs, are directly supported by individuals who organize business events, work in meeting venues or tourism businesses, or benefit in some way directly by the expenditures incurred by participants, non-participants and DMOs. To put this figure in perspective, the direct employment supported by business events at a national level is nearly double that of telecommunications or utilities. In addition to the full-year jobs directly supported, a further 87,800 jobs are supported though indirect economic contributions associated with the production requirements flowing through backward-linked industries (for example, industries supplying products and services to hotels). A further 53,000 full-year jobs are supported by business event activity through induced round effects resulting from the re-spending of household income earned directly or indirectly as a result of business events. Chart 1: Employment Supported by Business Events Activity (Canada- 2012) 15.4% 58.9% 25.7% n n n Direct Impact Indirect Impact Induced Impact Wages - National The wages and salaries that correspond with the employment supported by business events activity in Canada during 2012 is estimated at $17.3 billion, of which $9.2 billion was paid to workers who directly benefited from business event activity. On top of the those workers who directly benefit from business events activity, an additional $8.1 billion in wages and salaries were also paid out during 2012 through indirect and induced round effects. Overall, the average wage paid for the 341,700 full-year jobs supported by business meetings activity in Canada was $50,600. 9

11 Chart 2: Wages Supported by Business Events Activity (Canada- 2012) 17.3% 53.2% 29.5% n n n Direct Impact Indirect Impact Induced Impact GDP - National The direct impact of business events activity in Canada contributed $12.5 billion to Canada s gross domestic product (GDP) in Aside from meeting venues, DMOs and many tourism businesses, the direct impact phase also includes those businesses where meeting planners work, both as in-house (or corporate) planners and independent planners. The $12.5 billion in direct GDP represents nearly 40 per cent of the direct economic contribution made by Canada s tourism sector. Including indirect and induced round effects, business events activity delivered a total of $27.5 billion to Canada s GDP in This represents approximately 1.5 per cent of Canada s total GDP. Table 7: GDP Generated by Business events activity (Canada- 2012) Impact Phase Direct Impact Indirect Impact Induced Impact Total Impact GDP $12.5 billion $8.6 billion $6.4 billion $27.5 billion Taxes - National Business events contribute to the tax base of Canada in many ways. During the direct impact phase, business events activity contributed nearly $5.1 billion in taxes during Of that, federal taxes accounted for $2.5 billion, with provincial/territorial taxes accounting for nearly $2.2 billion and municipal taxes/charges accounting for the remaining $344 million. While sales taxes were the largest single category of tax collected ($2.0 billion) in the direct impact phase, taxes on personal incomes also accounted for just under $1.1 billion, with social security contributions accounting for $780 million. Other federal and provincial taxes (including gasoline taxes, excise taxes, and import duties) accounted for $590 million, and corporate taxes brought in $280 million. Including the indirect and induced impact phase, business event activity in 2012 contributed just under $8.5 billion in taxes to all levels of government. Of that, federal taxes accounted for $4.1 billion, with provincial/territorial taxes accounting for $3.6 billion and municipal taxes/charges accounting for the remaining $772 million. In total, sales taxes still accounted for the largest single category of tax collected ($2.5 billion), and taxes on personal incomes accounting for nearly $1.7 billion. 10

12 Table 8: Taxes Generated by Business Events Activity (2012) Category of Tax Direct Effect ($millions) Indirect/ Induced Effect ($millions) Total ($millions) Income Tax $1,062.3 $628.8 $1,691.1 Corporate Tax $279.9 $413.3 $693.2 Social Security Contributions $780.4 $813.5 $1,593.9 Federal Sales Tax (GST/HST) $1,146.8 $275.1 $1,421.9 Provincial Sales Tax (PST/QST/HST) $847.4 $195.6 $1,043.0 Other Federal & Provincial Taxes $590.4 $656.3 $1,246.7 Municipal Taxes $344.0 $427.7 $771.7 Total $5,051.2 $3,410.4 $8,461.6 Level of Government Direct Effect Indirect/ induced Effect Total Federal $2,515.4 $1,538.1 $4,053.6 Provincial/Territorial $2,191.8 $1,444.5 $3,636.3 Municipal $344.0 $427.7 $771.7 Total $5,051.2 $3,410.4 $8, direct Economic Contribution Results - Satellite Accounting Framework (Employment, GDP) A satellite accounting perspective is often used to measure the size of economic sectors that are not defined as industries in the traditional system of national accounts. The tourism satellite account is an example of a satellite accounting framework that measures the economic footprint of the tourism sector that credits the purchases made by tourists to the products and services provided by traditional industries, including transportation, accommodation, food and beverage, recreation and entertainment, and travel services. In much the same way, a supplementary extension of the tourism satellite accounting framework that captures business events (or meetings) requires re-organizing the traditional national accounts reporting system to identify the contribution of business events to a national or regional economy. Like tourism, business events relate more to a particular type of customer (in this case meeting participants) than an output produced by a particular industry or a type of commodity. The general approach used in satellite accounting is to claim a share of the sales of various traditional commodities or output of industries to be used towards the sector or activity being introduced. The potential challenge in adopting a meetings sector extension to the tourism satellite account is that some commodities or industries linked with the meetings sector inevitably overlap with those of the tourism sector. To address this challenge, the UNWTO guidelines suggest that the boundaries of the core meetings sector include industries characterized as specialized meeting organizers, convention centers, congresses, exhibition halls and convention, and visitors bureaus. On the commodity side, the recommended boundaries to account for meetings include meeting planning and production as well as venue rentals. 11

13 Unfortunately, the limitation of using the rather narrow definition of meetings, particularly from the industry or supply side, is that it inherently produces very conservative estimates of the direct production activities required to satisfy all the demands associated with meeting planning and production, and venue rental. One of the reasons for this stems from the fact that the majority of meeting planning and production occurs without the involvement of specialized meeting planners. By the same token, the type of facility used to host meetings will frequently extend beyond convention centers, congresses and exhibition halls. As a result, the narrow definition of the meetings sector outlined by UNWTO only captures a relatively small percentage of inputs and outputs associated with the production of meetings goods and services. For this reason, it is important to understand the perspective that is being used to convey the economic contribution of business events. In our report, the results of the economic contribution analysis using an extension to the tourism satellite account is provided only at the national level and only for business events overall. As is the case with satellite accounts used in other capacities, the framework is also used in this study to represent the direct impact phase. Still, the satellite accounting perspective adds value with the ability to highlight specific elements of the meetings sector using collective units of measurement rather than have its contribution obscured across a wide range of traditional industry groups in the system of national accounts. The table below captures the economic contribution of business events using a satellite accounting framework. Overall, the economic contribution displayed using a satellite accounting perspective is equal to that reported using a traditional system of national accounts approach, however, differences will be observed from the industrial composition associated with each perspective. In aggregate, the economic contribution analysis suggests that the $29.0 billion in business events supports direct employment of nearly 201,300 full-year jobs. From an extended tourism satellite accounting perspective, only 5,013 jobs (2.5 per cent) are concentrated in the meetings sector. Of those, just under 1,600 full-year jobs are associated with specialized meeting organizers and over 3,200 full-year jobs are in purpose-built meeting venues. It is important to remember that the narrow specification of the economic activity related to business events does not account for all the demands associated with meeting planning and production and venue rental. In fact, our analysis shows that the level of employment supported in satisfying the full demands of meeting planning and production and venue rental is approximately 50,700 full-year jobs. In this context, 27,022 full-year jobs are attributed to meeting organizers (both as in-house and independent meeting organizers) and 23,456 full-year jobs are attributed to meeting venues (both in purpose-built facilities as well as in other facilities). These larger meeting related figures do not show up directly in the extension to the satellite account framework because the bulk of the activity is allocated to the primary business activity. In the case of in-house meeting planners and for many meeting venues, organizing and hosting meetings will not be the primary business activity. What the extension to the tourism satellite account does show quite clearly is that business events provide significant benefits to tourism and other industries. Specifically, business events provide nearly 120,000 full-year jobs in tourism industries. The level of employment in tourism industries that is attributed to business events is 24 per cent of the employment that tourism activity directly supports in tourism industries. Of those industries within the tourism sector, our analysis suggests the accommodation and food and beverage services industries benefited the most from business event activity. In these industries, some of the employment will undoubtedly be attributed to satisfying demands associated with either meeting planning and production or venue rental, however, the majority will be attributed to satisfying the travel demands associated with business event participants. 12

14 In fact the level of employment in accommodation and food and beverages that is attributed to business events represents 37 per cent and 20 per cent respectively, of the employment that tourism activity directly supports in these industries. Overall, direct employment in the meetings and tourism sectors combined accounted for nearly 125,00 full-year jobs, or 62 per cent of all the direct employment supported by business event activity. Direct employment in other industries outside of meetings and tourism generated nearly 77,000 full-year jobs during A large share of the employment projected in other sectors of the economy is associated with in-house meeting organizers who are employed in industries outside of the meetings or tourism sector. Beyond this group, employment in other sectors also includes a wide range of industries/sectors such as those in the retail sector that benefit from retail purchases made by attendees to business events. It also includes individuals employed in manufacturing or construction, individuals who benefit from exhibit booth materials and construction, and individuals in business services who benefit from advertising and promoting business events. Table 9: Direct Employment Supported by Business Event Demand in Canada (2012) Sector/Industry Full-Year Jobs Meetings Sector 5,013 Meeting Organizers 1,594 Meeting Venues 3,249 DMOs 171 Tourism Commodities 119,750 Transportation 19,993 Air 7,502 Rail 594 Other 11,897 Accommodation 58,497 Food & Beverage Services 31,208 Other Tourism commodities 10,052 Recreation and Entertainment 8,273 Travel Services 1,779 Total Meetings and Tourism Industries 124,764 Other Industries 76,521 Direct employment generated from business events activity 201,285 An extension to the tourism satellite account also makes it possible to view the GDP contributions of business events within the meetings sector, the tourism sector, and other sectors of the economy. Of the total $12.5 billion direct contribution of business events activity to Canada s GDP, nearly $230 million (2 per cent) came from within the meetings sector. Again, it is important to remember that the narrow specification of the meetings sector does not account for all the demands associated with meeting planning and production and venue rental. Our analysis shows that the amount of GDP contributed in satisfying the full demands of meeting planning 13

15 and production and venue rental is over $2.4 billion. Of this, approximately $1.4 billion is attributed to meeting organizers (both as in-house and independent meeting organizers) and $1.0 billion to meeting venues (both purpose-built facilities as well as other facilities). Once again, these larger meeting related figures do not show up directly in the extension to the satellite account framework because the bulk of the activity is allocated to the primary business activity of businesses employing in-house planners as well as those that rent out meeting space as a secondary income source, as in the case of the accommodation industry or the education sector. As was the case for employment, the extension to the tourism satellite account clearly shows that business events significantly contribute to the GDP of tourism industries as well as other industries. Overall, business events contributed over $6.3 billion in GDP to tourism industries. Of that, the largest beneficiaries are accommodation, air transportation, and food and beverage services. Other industries outside of those contained in the meetings and tourism sectors (such as retail trade, manufacturing, construction, business services, and those employing in-house planners) accounted for the remaining $5.9 billion (or 47 per cent). Table 10: Direct GDP Generated by Business Event Demand in Canada (2012) Sector/Industry Full-Year Jobs Meetings Sector $227,874,665 Meeting Organizers $77,045,602 Meeting Venues $142,187,423 DMOs $8,641,640 Tourism Commodities $6,329,049,277 Transportation $1,689,022,741 Air $1,090,843,246 Rail $123,902,624 Other $474,276,871 Accommodation $3,213,112,304 Food & Beverage Services $1,006,104,409 Other Tourism commodities $420,809,823 Recreation and Entertainment $324,199,691 Travel Services $96,610,132 Total Meetings and Tourism Industries $6,556,923,942 Other Industries $5,912,259,264 Direct GDP generated from business events activity $12,469,183,206 14

16 4.0 Economic Contribution of Business Events - Western Canada 4.1 Economic Contribution of Business Events - Western Canada This section of the report focuses on the economic contribution of business events across Western Canada. 7 The figures reported were derived by conducting an economic contribution analysis at the provincial level. For the figures corresponding to the Manitoba/ Saskatchewan region, the economic contribution analysis involved summing up the results of each individual provincial analysis. The tables presented provide a high level summary of the economic contribution of business event activity. Readers can refer to Appendix C to see a more detailed industry breakdown of the economic contribution analysis pertaining to business events at the national and provincial/regional levels Employment - Western Canada Analysis shows that business events activity supported over 53,500 and 59,100 full-year jobs in British Columbia and Alberta. Within Manitoba/Saskatchewan, business events activity supported over 32,000 full-year jobs. This level of employment represents approximately 2.8 per cent of all employment in Alberta and Manitoba/Saskatchewan and 2.3 per cent of the employment in British Columbia. Compared with the level of spending associated with business events, analysis suggests that one full-year job is supported for every $102,500 in direct spending on business events in Alberta, for every $90,300 in British Columbia, and $90,900 in Manitoba/Saskatchewan. The analysis also reveals that of the total jobs supported across Western Canada, approximately 59 per cent are by individuals who organize business events and work in meeting venues and tourism businesses, or benefit in some way directly by the expenditures incurred by participants, non-participants, and DMOs. Table 11: Employment Supported by Business Events Activity (Western Canada ) Impact Phase British Columbia Alberta Manitoba/Saskatchewan Direct Impact 31,386 34,572 19,216 Indirect Impact 13,493 15,784 8,827 Induced Impact 8,666 8,773 4,403 Total Impact 53,545 59,129 32,447 7 Considering the sample sizes associated with the primary data collected through the various survey instruments, the economic contribution of business event activity is presented using seven provincial regions of Canada: British Columbia, Alberta, Saskatchewan-Manitoba, Ontario, Quebec and Atlantic Canada (New Brunswick, Nova Scotia, Newfoundland, and Prince Edward Island). 8 The economic contribution analysis of business events at a provincial or regional level are not presented using the satellite accounting approach because current provincial and territorial tourism satellite accounts do not exist. Instead, the figures reported at the provincial/regional level are based on final demand simulations using an inputoutput based model to generate the direct, indirect and induced economic contribution of business event activity. 15

17 4.1.2 Wages - Western Canada The level of wages and salaries supported as a result of business events activity in British Columbia during 2012 was estimated at $2.7 billion, of which $1.4 billion was paid to workers who directly benefited from business events activity. In Alberta, a total of $3.3 billion was paid out in wages and salaries, with 53 per cent paid to workers who directly benefited from business events activity. Within Manitoba/Saskatchewan, just under $1.5 billion was paid out in wages and salaries, with 51 per cent paid to workers who directly benefited from business events activity. Overall, the average wage paid for those jobs supported by business event activity was $50,950 in British Columbia, $56,300 in Alberta, and $45,300 in Manitoba/Saskatchewan. Table 12: Wages Supported by Business Events Activity (Western Canada ) Impact Phase British Columbia Alberta Manitoba/Saskatchewan Direct Impact $1.4 billion $1.8 billion $0.8 billion Indirect Impact $0.8 billion $1.0 billion $0.5 billion Induced Impact $0.5 billion $0.5 billion $0.2 billion Total Impact $2.7 billion $3.3 billion $1.5 billion GDP - Western Canada Business events activity delivered over $4.3 billion to British Columbia s gross domestic product (GDP) in This is approximately 2 per cent of British Columbia s total GDP. In Alberta and within Manitoba/Saskatchewan, business events activity contributed $3.3 billion and $1.5 billion respectively, to the total GDP in each region. Across these regions, business events activity accounted for approximately 1.8 per cent of the total GDP in Alberta and likewise in Manitoba/Saskatchewan. Table 13: GDP Generated by Business Events Activity (Western Canada ) Impact Phase British Columbia Alberta Manitoba/Saskatchewan Direct Impact $1.9 billion $2.6 billion $1.1 billion Indirect Impact $1.4 billion $1.8 billion $0.8 billion Induced Impact $1.0 billion $1.1 billion $0.5 billion Total Impact $4.3 billion $5.5 billion $2.4 billion Taxes Western Canada In 2012, business events activity in British Columbia contributed nearly $1.3 billion in taxes to all levels of government in Of that, federal taxes accounted for $632 million, provincial taxes accounted for $521 million, and municipal taxes/charges accounted for the remaining $120 million. In Alberta, business events activity contributed over $1.5 billion in taxes during 2012, with just under $900 million allocated to the federal government, $461 million to the provincial government and $159 million to municipal governments. Within Manitoba/Saskatchewan, business events activity that same year contributed $698 million in taxes. Of that, $340 million was allocated to the federal government, $290 million to provincial governments and the remaining $68 million to municipal governments. 16

18 Table 14: Taxes Generated by Business Events Activity (Western Canada ) Category of Tax British Columbia ($millions) Alberta ($millions) Manitoba/Saskatchewan ($millions) Income Tax $208.4 $316.3 $104.9 Corporate Tax $103.7 $137.9 $62.9 Social Security Contributions $248.9 $316.7 $136.7 Federal Sales Tax (GST/HST) $229.7 $326.2 $136.5 Provincial Sales Tax (PST/QST/HST) $171.4 $1.5 $76.9 Other Federal & Provincial Taxes $191.2 $259.4 $112.2 Municipal Taxes $119.7 $158.4 $68.3 Total $1,273.0 $1,516.5 $698.4 Level of Government British Columbia ($millions) Alberta ($millions) Manitoba/Saskatchewan ($millions) Federal $632.3 $897.3 $340.1 Provincial/Territorial $521.0 $460.8 $290.0 Municipal $119.7 $158.4 $68.3 Total $1,273.0 $1,516.5 $ Economic Contribution of Business Events - Central/Atlantic Canada 5.1 Economic Contribution of Business Events - Central/Atlantic Canada This section reveals the economic contribution analysis of business events across Central and Atlantic Canada. Figures were derived by conducting an economic contribution analysis for each province. For Atlantic Canada, the results summed up the economic contribution of each provincial analysis. The tables presented in this section provide a high level summary of the economic contribution of business event activity. Readers can refer to Appendix C to see a more detailed industry breakdown of the economic contribution analysis pertaining to business events at the national and provincial/regional level Employment - Central/Atlantic Canada Our analysis shows that business events activity supported over 104,000 full-year jobs in Ontario, over 61,000 full-year jobs in Quebec, and just under 30,000 full-year jobs in Atlantic Canada. This level of employment represents approximately 1.5 per cent of all employment in Ontario and Quebec and 2.7 per cent in Atlantic Canada. Compared with the initial level of spending, analysis suggests that one full-year of employment was supported for every $83,000 in direct spending on business events in Ontario, and for every $63,900 in Quebec, and $82,400 in Atlantic Canada. 17

19 Analysis also reveals that of the total jobs supported in Ontario, approximately 57 per cent were by individuals who organize business events, work in meeting venues, tourism businesses or benefit in some way directly by the expenditures incurred by participants, non-participants and DMOs. For Atlantic Canada and Quebec, the share of jobs supported by individuals who benefit in some way directly from business events activity is higher, at 61 per cent. Table 15: Employment Supported by Business Events Activity (Central/Atlantic Canada ) Impact Phase Ontario Quebec Atlantic Canada Direct Impact 59,368 37,771 17,703 Indirect Impact 26,975 14,703 7,622 Induced Impact 18,021 8,796 3,889 Total Impact 104,364 61,270 29, Wages - Central/Atlantic Canada The level of wages and salaries attributed to business events activity in Ontario is estimated at $5.5 billion in 2012, of which $2.9 billion was paid to workers who directly benefited from business events activity. In Quebec, a total of $2.8 billion was paid out in wages and salaries, with $1.5 billion paid to workers who directly benefited from business events activity. In Atlantic Canada, $1.4 billion was paid out in wages and salaries, with $722 million paid to workers who directly benefited from business events activity. Overall, the average annual wage paid for jobs supported by business meetings activity was $53,000 in Ontario, $46,100 in Quebec and $46,200 in Atlantic Canada. Table 16: Wages Supported by Business Events Activity (Central/Atlantic Canada- 2012) Impact Phase Ontario Quebec Atlantic Canada Direct Impact $2.9 billion $1.5 billion $722 million Indirect Impact $1.6 billion $0.8 billion $428 million Induced Impact $1.0 billion $0.5 billion $201 million Total Impact $5.5 billion $2.8 billion $1.4 billion GDP - Central/Atlantic Canada Business events activity delivered over $8.6 billion to Ontario s gross domestic product (GDP) in This is approximately 1.3 per cent of Ontario s total GDP. In Quebec and Atlantic Canada, business events activity contributed $4.3 billion and $2.2 billion respectively, to the total GDP in each region. In Quebec, business events activity accounted for 1.2 per cent of total GDP in the province, while in Atlantic Canada, 2 per cent of total GDP was attributed to business events. 18

20 Table 17: GDP Generated by Business Events Activity (Central/Atlantic Canada ) Impact Phase Ontario Quebec Atlantic Canada Direct Impact $3.8 billion $2.0 billion $1.0 billion Indirect Impact $2.5 billion $1.3 billion $724 million Induced Impact $2.3 billion $1.0 billion $423 million Total Impact $8.6 billion $4.3 billion $2.2 billion Taxes Central/Atlantic Canada Business events activity in Ontario contributed nearly $2.8 billion in taxes to all levels of government during Of that, federal taxes accounted for $1.3 billion, provincial taxes accounted for $1.2 billion, and municipal taxes/charges accounted for the remaining $246 million. For Quebec, business events activity contributed $1.4 billion in taxes, with $545 million allocated to the federal government, $739 million to the provincial government, and $117 million to municipal governments. Within Atlantic Canada, business events activity contributed $769 million in taxes. Of that, $325 million was allocated to the federal government, $383 million to provincial governments, and the remaining $61 million to municipal governments. Table 18: Taxes Generated by Business Events Activity (Central/Atlantic Canada ) Category of Tax Ontario ($millions) Quebec ($millions) Atlantic Canada ($millions) Income Tax $580.6 $345.6 $128.9 Corporate Tax $224.5 $104.8 $56.0 Social Security Contributions $498.1 $258.5 $128.5 Federal Sales Tax (GST/HST) $419.5 $173.7 $124.7 Provincial Sales Tax (PST/QST/HST) $415.0 $211.7 $166.5 Other Federal & Provincial Taxes $390.6 $189.7 $96.6 Municipal Taxes $246.3 $116.6 $59.1 Total $2,774.7 $1,400.6 $760.3 Level of Government Ontario ($millions) Quebec ($millions) Atlantic Canada ($millions) Federal $1,294.3 $544.6 $321.3 Provincial/Territorial $1,234.1 $739.4 $379.9 Municipal $246.3 $116.6 $59.1 Total $2,774.7 $1,400.6 $