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Special 27 DIRECT INDIRECT INDUCED TOTAL IMPACT IMPACT IMPACT IMPACT2005 REsULTs (2005 PRICEs) Number of events 1,800Net expenditure/output (£bn) 3.5 3.8 2.0 9.3Gross value-added (GVa) (£bn) 1.7 1.6 0.8 4.1tax (£bn) 0.5 0.3 0.2 1.0employment 55,800 53,500 27,300 136,6002005 REsULTs (2010 PRICEs)Net expenditure/output (£bn) 4.0 4.4 2.3 10.6GVa (£bn) 1.9 1.8 0.9 4.7tax (£bn) 0.6 0.3 0.2 1.12010 REsULTsNumber of events 1,600Net expenditure/output (£bn) 4.9 3.8 2.3 11.0GVa (£bn) 2.6 1.8 1.2 5.6tax (£bn) 1.2 0.8 0.5 2.5employment 76,300 41,900 30,300 148,500organisers accrued an estimated income of £1.6bn. This contrasts with expenditure of £1bn in 2010, representing a £580m profit. Another key component of the new EIS report is the number of exhibitors and visitors coming to exhibitions and how much each group spends on participating. The report found 265,000 exhibitors were present in the 1,600 events recorded in 2010, averaging 165 exhibitors per event. Of these, 20 per cent were from outside the UK. This compares with 150 exhibitors per event in 2005.Combined, exhibitors spent nearly £2.7bn on goods and services to take part in events. Renting space proved to be the primary outlay overall, accounting for more than £850m in expenditure during 2010. Other significant expenses included the design and build of stands (£400m), followed by travel and accommodation for staff (£350m). followed by marketing (23 per cent), feature build, carpeting and furniture (22 per cent) and space rental (19 per cent). Public exhibition organisers meanwhile, spent the most on space (35 per cent) followed by marketing (25 per cent), feature build, carpeting and furniture (19 per cent) and staffing costs (18 per cent). Overall, EIS claimed the average income per event is more than £1m today, meaning event EXHIBITION INDUSTRY: THEN aND NOw DIRECT INDIRECT INDUCED TOTAL IMPACT IMPACT IMPACT IMPACTVIsITORs Net expenditure/output (£bn) 1.4 1.1 0.6 3.2GVa (£bn) 0.7 0.5 0.3 1.5employment 26,000 11,900 8,100 46,000ExhIbITORsNet expenditure/output (£bn) 1.8 1.3 0.9 4.0GVa (£bn) 0.9 0.6 0.4 2.0employment 25,100 15,000 11,000 51,100ORgANIsERsNet expenditure/output (£bn) 1.3 1.2 0.7 3.2GVa (£bn) 0.8 0.6 0.3 1.7employment 20,200 13,200 8,600 42,000VENUEsNet expenditure/output (£bn) 0.3 0.2 0.1 0.6GVa (£bn) 0.2 0.1 0.1 0.3employment 5,000 1,900 2,600 9,5002010: CONTRIBUTION BY CHaNNEl Of ImpaCTNote on graphs: Individual figures displayed above are rounded up to the nearest decimal point. Source: The Economic Impact of the UK Exhibitions Industry, February 2012

special report28 report estimates exhibitor spending represents a value-added impact of £910m.In comparison, more than 13 million people visited UK exhibitions during the same year, averaging 8,300 visitors per exhibition against 9,660 visitors in 2005. In total, visitors spent £1.4bn on participating in events in 2010. Of these attendees, 7.9 million paid for at least one night's accommodation (£600m), and 850,000 came from outside of the UK. After accommodation, the largest visitor costs were travel (£300m) followed by food and drink (£300m). The report estimates this spending had a value-added impact of £650m.It's also worth noting venues are estimated to have derived £315m in income from the 1,581 events held in 2010, representing a value contribution to GDP of £200m and supporting 5,000 jobs. Further researchThe EIS report presents several indicators of the exhibition industry's influence, but there are still significant steps to be taken to show just how powerful exhibitions are. Perhaps most significantly, the report doesn't detail the actual value of sales made during, or as a result of exhibiting at an exhibition. Halwagi pointed out the task of working out how much business exhibitions generate for their exhibitors is an incredibly challenging one, but said the association was committed to trying. In the meantime, several organisers already utilise sales undertaken during their trade shows to highlight the importance of their brands. Reed Exhibitions for example, claims last year's Word Travel Market generated £1.65bn in travel and tourism industry deals either signed at the event, or as a result of negotiations through its Meridian Club business network that will lead to deals before its 2012 edition. This figure was up 16 per cent year-on-year and ascertained via third-party research. Tarsus also uses business deals struck at its Dubai Airshow to signify its importance to the aviation industry. Last year's order book was worth US$63.3bn (£39.9bn), up from $14bn on the previous 2009 edition. "The additional sales generated for exhibitors as a result of participating in an exhibition are a further economic benefit of the sector," the EIS authors stated. "Our survey of exhibitors conducted for this study found that on average, trade exhibitors expect to generate more than £800,000 in additional sales due to attending the event; for publication exhibitions, the figure came in at £170,000. It should be noted that these results include large outliers, inflating the overall average. "However, for all exhibitions, over one-third of respondents expected to generate between £10,000 and £50,000 in additional sales."Halwagi admitted the level of business emulated through exhibitions and event platforms is difficult to get a clear grasp on, particularly as some of this business could be undertaken in other countries."It would be great to see a comprehensive figure which demonstrates how much business exhibitions stimulate the UK economy," he said. "I am convinced it would be in the hundreds of billions. Unfortunately, an overall figure is vague at the moment and therefore live events don't hold the weight they should. This is something we want to address at some point."In addition, Halwagi expressed an interest in a regional study into exhibitions to gain more details about which regions are preferred and performing better than others. Perhaps the biggest hurdle however, is the changing face of exhibitions themselves. In former years, industry pundits have restricted the definition of an exhibition to an event that is at least two days in duration, covers more than 2,000sqm and is (with a couple of exceptions) held indoors. "The hardest thing for this industry is what the definition of an exhibition is," Halwagi claimed. "The whole landscape of the events industry is changing from the old-school definition of exhibitions and we have to embrace that." Whatever approach you take, what's clear is that there is an evolution occurring in our industry and exhibitions have to take their place among the wider live events industry table, Halwagi said. According to a recent report from the Events Industry Forum and the Business Visits and Events Partnership (BVEP), the total events sector is currently worth £36.1bn and could reach £48.4bn by 2020. "We are in a difficult economic climate today and the Government is looking to stimulate business growth," Halwagi added. "These figures just touch the surface of how much business exhibitions stimulate."£11bnthe total economic impact of the UK exhibition industry in 2010, according to the new Economic Impact of the UK Exhibitions Industry survey.£2.6bnthe direct value-added contribution the UK exhibition industry made to the UK economy in 2010. this contrasts with £1.9bn in 2005 (inflation-adjusted figure).£1mthe average income accrued by event organisers per exhibition in 2010. event organisers had a total estimated income of £1.6bn and spent £1bn, generating an estimated profit of £580m.1,581the number of exhibitions held during 2010, according to the new report. this figure includes one-day and multi-day public and trade exhibitions plus outdoor events over 2,000sqm.8,300a total of 13.1 million people attended exhibitions in 2010. this equates to 8,300 visitors on average per exhibition. in all, visitors spent £1.4bn to attend. 0204060801003%18%25%19%35%26%23%22%19%10%PUBLICTRADEOtherStaff costsMarketingBuild, utilities, furnitureSpace rentalSpending profile: event organiSerS020406080100PUBLICTRADE15%19%10%49%7%15%13%27%37%8%Furniture and materialsMarketing and salesStaff travel & accom.Stand design and buildSpace rentalSpending profile: exhibitorS