Generates considerable social economic effects

Generates considerable social economic effects

Impressive secondary effects such as increases in productivity, jobs, growth and infrastructure are generated by exhibitions on regional or national level. A rule of thumb says that exhibitions trigger spending of about six times the sum of the turnover generated by the organisers in the region where they take place.

To give an example, the German industry association AUMA estimates 23.5 billion EUR of socio economic effects in Germany per year. This equals 226 000 jobs generated by exhibitions in Germany. Exhibitors spend 7.8 billion EUR, visitors 3.8 billion EUR and exhibition organisers invest 0.4 billion EUR, totalling 12 billion EUR. 60 % of these employment effects are induced by the exhibitors’ spending. The German state receives exhibition related tax revenues of about 3,8 billion EUR.
A recent study of the organisers of EXPO 2015 in Milan calculated that the effects of the world exhibition EXPO 2015 will induce social economic effects of 24.7 billion EUR and up to 200 000 jobs in Italy alone until 2020.

Jobs are mostly generated and secured in the services sector, e.g. exhibitions services for organisers and exhibitors such as stand construction, logistics, personnel and interpretation etc.; services for exhibitors and visitors around their participation in trade fairs include business tourism, transport industries, retail and culture. Significant numbers of jobs are also generated for exhibiting companies through the new business they generate at trade fairs. This varies substantially from industry to industry but can be anywhere from 5 – 40% of new sales.

Regional development

In Europe, exhibitions are integral part of local economic policies. Local political and administrative entities benefit from taxes and jobs generated by exhibition activities. Large and outstanding events make a region attractive, its quality of life and image increase. Very often, media presence and coverage of exhibitions supports these effects, political and business contacts initiated during exhibitions may have positive follow-up for the location.

Employees of service companies in the exhibitions sector benefit from successful exhibition activities. Many companies establish their business and create employment at an attractive exhibition location. The local and regional administration benefit from higher employment rates, higher tax income, higher purchasing power.