The Meetings Industry is 29th Largest Contributor to the Gross National Product
The Convention Industry Council's 2004 Economic Impact Study shows the strength of the industry
MCLEAN, VA, September 13, 2005. The Convention Industry Council (CIC) released today its 2004 Economic Impact Study, which provides the most current findings of the economic impact of the meetings, conventions, exhibitions, and incentive travel industry in the United States. The study provides a macroeconomic analysis of the industry's direct spending and employment growth.
"CIC is pleased to present this study on the economic impact of the meetings, conventions, exhibitions, and incentive travel industry," said Mary E. Power, CAE, president and CEO of the Convention Industry Council. "Conducted by VERIS Consulting, LLC of Reston, Virginia, this report estimates the economic impact of this industry to the national economy. With this study, CIC hopes to increase public awareness of the industry as a vital economic engine."
Summary of Findings
The meetings, conventions, exhibitions, and incentive travel industry is a 365-day-a-year business that operates in communities, large and small, across the country. Taken as a whole, it generated $122.31billion in total direct spending in 2004, making it the 29th largest contributor to the gross national product. That is more than the "pharmaceutical and medicine manufacturing" industry and only slightly less than the "nursing and residential care facilities" industry.
The industry's spending and tax revenue ripple through every sector of the local economy, from restaurants and transportation to retail stores and other services, while supporting 1.7 million jobs in the United States. It generates more than 36% of the hotel industry's estimated $109.3 billion in operating revenue, and its attendees account for nearly 17% of the air transportation industry's operating income.
Facts & Figures
The industry's total direct spending is $122.31 billion. Direct Employment Impact, the number of full-time equivalent (FTE) jobs supported by the direct spending of the industry, is 1,710,000 jobs. Direct Tax Impact rose to $21.40 billion.
Association-sponsored events accounted for two thirds, or $81.94 billion, of the direct spending industry total. Corporate-sponsored events (including incentive travel) accounted for the remaining one third, or $40.37 billion.
The largest share of the convention and exhibition dollar (35 percent) is spent in hotels and other facilities. The rest is widely distributed throughout local economies. After air transportation (24 percent), the biggest categories of attendee, exhibitor, and sponsor spending were: restaurant and outside catering food & beverage outlets (14 percent) and business services (12 percent).
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