GUIDELINE SCRIPT FOR
MEETINGS MEASUREMENT PRESENTATION 2007
COVERING SLIDE
SLIDE 1
Tourism is often described as the world’s largest industry on the basis of its
global gross domestic product. Spending exceeded US$6 trillion globally in 2005
and a ten-year annualised growth is predicted of 4.2 per cent per year.
The travel and tourism industry represented 3.6 per cent of total GDP last year
but when you take into account the indirect contributions to the world, including
growth for tourism-related businesses, it is expected to total 10.3 percent of the
world’s GDP.
So what’s this got to do with me, you might ask?
I can almost feel the hairs rising on the back of a few necks!
I’m not in the travel industry, you rightly say. I’m part of the meetings industry
worldwide and we are doing equally well.
Absolutely right!
In 2004, for example, the meetings, conventions and incentive industry was
estimated to have contributed more than US$122 billion to the US economy and
if the experts are right, the industry is set to rise to new heights of success in
2007 worldwide.
Everyone’s painting a positive picture in 2007 for our industry, with plenty of
healthy evidence of growth during the next 12 months. Planners, for example,
expect to manage more meetings and bigger budgets.
So why do we need a major, ambitious additional project on a huge universal
scale to accurately measure the meetings industry.
SLIDE 2
The answer is that while we can confidently state that the global GDP for travel
and tourism is more than 10%, sadly we cannot do the same for the meetings
industry. Not because we do not make a major contribution to world economies,
because we do. But because we simply do not have the correct data to back it
up.
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In fact, when you look at the data that is being collected worldwide, there are
some huge differences that are often confusing, misleading and inconsistent. No
one is measuring like for like or meeting strict international criteria – and that’s
the problem.
The picture, though, is not all bad. Some countries are regularly collecting data,
even if its not harmonised and the available data has helped us to understand
the situation.
So we are not starting from zero!
SLIDE 3
But why do we need to measure the industry so precisely?
For one very good reason… unless we can globally measure the industry with
standardised methods that command official recognition, we will never achieve
the kind of standing, respect and acceptance at the highest levels of government.
Without it, the meetings industry will remain the ‘poor relation’ and not as a main
stream economic driver.
Without raising the bar to attract positive international profile, without a credible
understanding of its economic importance and an absolute knowledge of total
contribution to GDP, the meetings industry will not move to the next era of
continued growth and development.
This is the reason that the International Congress and Convention Association
(ICCA), Meeting Professionals International (MPI) and Reed Travel Exhibitions
(RTE) has teamed up with the World Tourism Organization in its capacity as a
United Nations specialized agency, to address the problem.
SLIDE 4
With the support of the leading national and international associations around the
world, the partners are recommending a form of Tourism Satellite Accounting to
measure the economic global importance of the meetings industry.
But what is Tourism Satellite Accounting or TSA and why is it the saviour of the
meetings industry?
It’s a measurement framework, based on certain concepts, definitions and
classifications and has been developed to provide a credible measure of the
economic contribution of the travel and tourism sector. The TSA identifies the
total output, costs value added and employment of the industry and its sub-sets.
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Basically, an adapted form of the accepted and recognised TSA will ensure that
everyone collating data on behalf of the meetings industry does so in exactly the
same way, using exactly the same definitions.
It is then possible for us to have a true picture of the economic worth of the
meetings industry.
SLIDE 5
So what does that mean for everyone working in the industry and when will this
new form of Satellite Accounting be ready to be delivered?
It’s a slow burn – work on this has been going for more than three years so far and will take more time before we have a credible solution to our problems.
Everyone has to be patient, but it’s also crucial at this point that everyone
understands why we are doing this and buys into the proposition.
Importantly, the first baby steps have taken place and we are now on to the next
chapter. But it will not happen without the overwhelming support of everyone
working in the industry in what ever role - or the political goodwill of politicians
and governments.
The first task of the partners was to commission a report which would examine
the problems and issues and make recommendations about how to go forward.
The report, ‘Measuring the Economic Importance of the Meetings Industry,
Developing a Tourism Satellite Account Extension’, has now been published and
it is now up to everyone working in the meetings industry to become familiar with
the findings of the report.
SLIDE 6
There are two versions. One is the official and comprehensive, detailed report
that can be downloaded from the partner’s website: as well as a brief summary,
which, if you do not have the time or inclination to read the full report, will still
give you an idea of the issues. (The websites where you can obtain both these
documents are www.mpiweb.org; www.icca.org; www.reedtravelexhibitions.org;
and www.eibtm.com)
SLIDE 7
First of all, lets look at who will be collecting this data and where will it go?
Data will need to be collated by government agencies as part of their national
statistics’ data collection. In order to do that, they will be asking for the cooperation of everyone working in the industry. In the first instance, as the
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partners are working in association with the UNWTO, we will be focusing on their
150 Member States, but in the long term it is essential that every country and
destination – both mature and emerging – participate in this measurement
process.
The detail of the type of data they will have to be collect has yet to be decided
and will be carried out by further feedback from countries already collecting data
and in discussion with the WTO’s Department of Statistics and Economic
Measurement. Other consultants and experts may also be introduced into the
initiative as the partners continue working together.
SLIDE 8
Part of the difficulty in the past has been the fact that the industry uses many
different definitions. Clearly we have to all use the same language and mean the
same thing when discussing our work. And the report brings us our first key
agreements.
Firstly, that we should all use the term ‘Meetings Industry’. The name is
increasingly being used already and, crucially, has the backing of key industry
participants.
The second definition is to agree the industry’s aim and there is unlikely to be
much dissent to the report’s recommendation here: To motivate participants, to
conduct business, share ideas, to learn, socialise and hold discussions.
The report says that the meeting size should be a minimum of ten delegates and
that the meeting venue should be one which involves payment. The report also
recommends that the meeting duration should be a minimum of four hours or one
half day or more.
From now on, these should be key words and sentences used by EVERYONE in
the industry all the time.
In addition to the publication of the report, there has been one other key
development which shows the new footprint for the meetings industry.
In order to be internationally comparable, the economic contribution of the
meetings industry requires first to recognize and verify a place for their activity in
the United Nations classifications of activities and products (ISIC and CPC,
respectively), and second to determine what services are provided and how they
should be measured.
The activity is now recognized as ISIC 8230 under the heading “Organisation of
conventions and trade shows” of which 8231 is “Organization of
conventions”. It is a service regarded as an administrative and support service
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to business. The service provided is classified as CPC 855961 “Convention
assistance and organization services.”
This official recognition by the UN in 2006 implies an increasing interest in
focusing on the macroeconomic contribution of the meetings industry both from
International and National Organizations: UNWTO is especially interested in the
tourism connection and will be watching the processes of this initiative with
considerable interest with a view to perhaps using something similar for other
sectors of travel and tourism that is not currently accurately measured. From this
perspective, we need to isolate and bring together revenues and costs
associated with holding meetings and all the expenditures of tourists whose
purpose of travel is to attend meetings, conferences and conventions.
SLIDE 9
Now we come to the inevitable question: What is happening right now?
In the new 12 months the partners and the UNWTO will be working on what data
will need to be collated.
But during that time, the partners believe it is absolutely essential that the
meetings industry – whether you are planners, suppliers, meetings management
professionals or working for government and other statistical agencies – will get
behind the initiative.
It will need powerful lobbying from the meetings industry and needs everyone
who works within it to wholeheartedly embrace the initiative if this is to be brought
to a successful conclusion.
It needs to be on the agenda of every meetings industry forum for instance. It
needs debate, discussion, exchange of ideas and education from everyone national statistical institutes, national convention bureaux, other government
agencies, businesses, private associations and individual professionals.
The partners’ Steering Group members need your feedback and during the year
they are embarking on a major communications and PR campaign to reach as
many people as possible within the industry. The report was launched at EIBTM
2006 in Barcelona and ha now been sent out to 40 leading industry associations
with a joint letter from the partners.
SLIDE 10
The Steering Group members are: Christian Mutschlechner, Immediate Past
President, ICCA, Didier Scaillet, Director of European Operations and Global
Development, MPI, Geoffrey Lipman, Assistant Secretary-General, UNWTO,
Antonio Massieu, head of the UNWTO Department of Statistics and Economic
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Measurement of Tourism, Carlos Romero, Executive Director, Affiliate Members,
UNWTO, Tom Nutley, Chairman Reed Travel Exhibitions. They need your
feedback, either directly through them or via the Joint Meetings Industry Council
(JMIC).
SLIDE 11
You can also reach the Steering Group by contacting Jane Larcombe who has
been working with the partners from the outset on this initiative by email:
info@meetings-measurement.com.
SLIDE 12
Ladies and gentlemen, this is the future of the industry. It’s the only viable
solution we have to ensure that we secure its rightful long term recognition.
prestige and status as a leading contributor to economies worldwide.
The partners ask that you familiarise yourself with the findings of the report and
that you become actively involved.
The future is yours, but only if we work together.
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