Republic of the Philippines

CAMARINES SUR POLYTECHNIC COLLEGES

Nabua, Camarines Sur

BUHI EXTENSION CAMPUS

Bachelor of Science in Office Administration 4

OA 417 A EVENTS MANAGEMENT

CHAPTER 4 – WHAT IS THE SIGNIFICANCE OF EVENT INDUSTRY?

TOPICS:

o SIGNIFICANCE OF THE EVENTS INDUSTRY FROM THE LEARNER’S POINT

OF VIEW
o SIGNIFICANCE OF THE EVENTS INDUSTRY FROM THE COUNTRY’S POINT
OF VIEW
o THE MULTIPLIER EFFECT

REPORTER:

MARYJUDE N. QUIRANTE

Source:

Events Management by Eloisa Altez-Romero

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BUHI EXTENSION CAMPUS

SIGNIFICANCE OF THE EVENTS INDUSTRY FROM THE LEARNER’S POINT

OF VIEW
Defining terms used by both practitioners and non-practitioners is as much a challenge
as defining the significance of MICE to the national and global economy.

Some are able to capture its significance by:

 Citing the expenditure and number of people travelling to and staying in

destinations to attend meetings, trade shows, or other events.

Others may note:

 The amount of investments poured into infrastructure and other developments,

including roads and remarkable venues, like the Sydney Opera House, s proof of
the industry’s contributions to the economy, since MICE served as the catalyst
for much developments

Some professionals:

 Make a career out of organizing festivals and other events, which only shows that
the MICE business plays a significant part at least in some people’s lives.

QUESTIONS TO PONDER:

How is MICE significant to you?

Have you organized a birthday party for yourself, a family member or a friend?
Have you ever been to a bazaar or a concert?
Have you attended to a student organization’s meeting or seminar?

If your answer in any of these questions is yes, then you have taken a part in an event
even though such events may not have been professionally organized.

Most of the topics covered in the study of MICE management are applicable in other
disciplines and in our daily lives, such as in budget preparation, sales and marketing,
time management, and risk crisis management. Planning and implementing an actual
event give you valuable experience which will help you face the challenges in the
workplace. For no matter how much effort has been exerted to make this book
comprehensive as possible, experience is still and will always be the best teacher.

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BUHI EXTENSION CAMPUS

SIGNIFICANCE OF THE EVENTS INDUSTRY FROM THE COUNTRY’S POINT OF

VIEW

The year 2012 marks a great year in tourism as international tourist arrivals reached the
one-billion mark. The United Nations World Tourism Organization (UNWTO) counted
about 1.035 billion tourist who stayed overnight in another country in 2012, which is
higher by 4% than the previous year. Southeast Asia is one of the regions that posted a
double-digit growth at 12% in the same year.

According to the UNWTO, tourism is: “The activities of person’s usual

environment are therefore a form of tourism. Events, can in fact, serve as one of the
tourist attractions of a destination. For instance, flying to Singapore to watch an artist’s
concert or a play is a form of events tourism. The events industry is considered an
important subsector of tourism for two major reasons:

1. Quantity. MICE events attract guests regardless of the season. Getz (2005)
pointed out the ability of events to offer new experiences (otherwise matured) at
destinations thus, attracting more visitors and repeaters and holding them
beyond peak days. This is especially beneficial during lean months or
immediately after busy days to extend the peak season. In the Philippines, peak
season fall around the Holy Week, All Saints’ Day, Christmas break and Summer
Vacation in April and May. Off-peak seasons fall on the months in between them.

2. Quality. According to studies, MICE attendees spend more compared to regular

or ordinary tourists hence, providing higher revenue for the same length of stay
compared to regular tourists. According to a recent ExPact Study conducted by
Destination Marketing Association International (DMAI, formerly known as
IACVB) on direct spending for meetings, conventions, and trade shows in the
United States, delegates spend an average of US$1.036 per event or US$290
per day.

According to UNWTO (2013), two international sporting events boosted tourism receipts
in three European countries in 2012. These were the UEFA European Football
Championship held in Poland and Ukraine and the London Summer Olympics and
Paralympics in the UK. Let us take a look at some of the events industry in our
neighboring countries:

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BUHI EXTENSION CAMPUS

1. Hong Kong. Hong Kong exhibitions industry generated 69, 600 full-time jobs and
US$5.3 billion in direct expenditure in 2012, which did not only result to a total
of about US$181 million tax receipts but created ripple effects in Hong Kong
economy as well. (HKECIA 2013)

2. Singapore. Singapore earned about US$3 billion in 2012 from MICE. (Singapore
Tourism Board 2014)

The events industry indeed contributes greatly to a country’s economic

development, especially for counties with events that attract international visitors.
It does not only boost tax receipts and infrastructure development but also
creates a ripple effect in the economy where backward links to suppliers and the
suppliers’ suppliers add more to the calculation of expenditures, resulting to what
we call the multiplier effect.

THE MULTIPLIER EFFECT

The multiplier effect is a direct economic impact which is equivalent to the “new”
money that visitors or outsiders bring and this money is circulates through
spending in the local economy. Examples are the money remitted by OFWs,
money spent by a tourist to buy something directly at a retail shop, and the
personal expenditure on food, lodging, and transportation of visitors attending
meetings.

Multiplier effect is created when different person use the same money several
times. Each the time the money is transferred from one person to another means
the money is counted as that person’s income. More transfers mean more
aggregate income means bigger money.

Level 1 Level 2 Level 3

Tourist dines at Restaurant staff Buys soap for

a restaurant and gets ₱350 a day ₱75
pays ₱ 1,000
Supplier gets ₱500 Supplier’s staff
gets ₱ 350 a day

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 Republic of the Philippines
CAMARINES SUR POLYTECHNIC COLLEGES
Nabua, Camarines Sur

BUHI EXTENSION CAMPUS

Simply put, the multiplier effect is the idea of repetition or multiplication of economic
activities and effects, such that the income gained from the tourist’s dinner does not end
there but creates a series of other purchases that help the local economy.