Exhibitions are among the significant enablers of global trade and economic growth . These events can have a substantial impact on local economies by attracting visitors to the area, generating direct spending, and supporting jobs.
Direct Spending
Exhibitions direct spending provides the clearest measure of the economic significance of exhibitions because it captures the full scope of services and goods directly provided by a range of industries . When visitors attend an exhibition, they spend money on a variety of goods and services, such as accommodation, transportation, food and beverages, and entertainment. This spending supports local businesses and generates tax revenue for the local government.
Job Creation
In addition to direct spending, exhibitions also support jobs in the local economy. These jobs can range from temporary positions, such as event staff and security personnel, to permanent positions in industries such as hospitality and tourism. By supporting job creation, exhibitions can help to boost local employment and stimulate economic growth.
Indirect and Induced Impacts
After accounting for indirect and induced impacts, exhibitions supported a total global economic impact in 2018 of €275.1 ($325.0) billion of output (business sales), 3.2 million jobs, €167.2 ($197.5) billion of GDP (representing contribution to global gross domestic product) . Indirect impacts refer to the additional economic activity that is generated as a result of exhibitions, such as increased demand for goods and services from suppliers. Induced impacts refer to the additional spending that is generated by employees who earn wages as a result of exhibitions.
Boosting Local Tourism
Exhibitions can also help to boost local tourism by attracting visitors to the area. These visitors may choose to extend their stay in order to explore the local attractions and amenities. This can generate additional spending on accommodation, food and beverages, transportation, and entertainment.
Supporting Local Businesses
By attracting visitors to the area and generating direct spending, exhibitions can help to support local businesses. This includes not only businesses in the hospitality and tourism industries but also suppliers of goods and services that are used by exhibition organizers and attendees.
Economic Multiplier Effect
The economic impact of exhibitions can be significantly increased through a phenomenon known as the multiplier effect. This effect takes place when money that is spent by exhibition attendees circulates throughout the local economy, being re-spent by businesses and their employees. For instance, when an attendee of an exhibition spends money on lodging or dining at a local establishment, the money they spend is then used by the business to pay wages to its employees or to purchase goods and services from other local businesses. This creates a chain reaction of economic activity that ripples throughout the local economy, generating additional revenue and employment opportunities.
Long-Term Benefits
In addition to their immediate economic impact, exhibitions can also have long-term benefits for local economies. By showcasing new products or technologies, exhibitions can help to attract investment or stimulate innovation in the local area. Exhibitions can also help to raise the profile of a destination or industry sector, attracting future business or tourism.
Exhibitions that have had a positive impact on local economies
The strategy of ‘exhibition-driven trade’ (the Yiwu model of China) has significantly encouraged the joint growth of both exhibitions and trade. The Echigo–Tsumari Art Triennial (exhibition-driven tourism) had positive impacts on sustainable tourism, economics, and the population.
In summary, exhibitions can have a substantial impact on local economies by generating direct spending, supporting job creation, stimulating additional economic activity through indirect and induced impacts, boosting local tourism, supporting local businesses, and creating an economic multiplier effect. By attracting visitors to the area and supporting local businesses, exhibitions can play an important role in driving economic growth and development.
