Survey
Making a big budget contribution in Munich
Messe München induces average revenue of € 3.3bn a year in Germany , according to the latest IFO study
very euro in revenue
E made by Germany ’ s Messe München generates ten euros in revenue nationwide , according to a new IFO Institute survey , and the growth drivers are international exhibitors and visitors .
Indirect profitability of trade fairs and congresses at the Munich location has risen 25 % since the last study , the IFO Institute noted .
“ The latest study by IFO on indirect profitability demonstrates Messe München ’ s importance as an economic factor for the city , Bavaria and the federal government . Each euro made by Messe München ( MMG ) induces ten euros of revenue nationwide : in hotels and restaurants , at tradefair construction companies , taxi companies , transport operators and cleaning , security and handicraft firms ,” says Klaus Dittrich , CEO of Messe München .
“ In the record year 2019 , Messe München even induced revenue of € 4.31bn nationwide . bauma , the world ’ s largest trade fair , induced revenue of € 1.55bn alone . As regards employment , Messe München created more than 35,000 jobs and helped generate tax revenue of € 846m in the record year ,” Dittrich added .
Greater purchasing power As part of its latest study , the IFO Institute for Economic Research looked at the direct and indirect knock-on effects of trade fairs and congresses in Munich , identifying the revenue and taxes that were generated and calculating the number of gainfully employed persons dependent on trade fair and congress business . The period reviewed was from 2016 to 2019 .
Exhibitors and visitors to trade fairs and congresses in Munich induce average total revenue of € 3.29bn a year throughout Germany . Around 80 % of these purchasing power effects are in Munich (€ 1.77bn ) and Bavaria (€ 0.83bn , excluding Munich ). Compared to the previous IFO study from 2013 (€ 2.63bn ), the revenue induced nationwide rose by 25 %.
The revenue induced for Munich alone even increased by 28 %.
“ That is attributable to the increase in the international spread of visitors and exhibitors , who stay longer and spend more on catering and shopping , especially in Munich ,” said Horst Penzkofer from the IFO Institute , who was in charge of the study .
Messe München induces total revenue of € 3.29bn and creates 27,294 jobs in Germany . Here , too , 83 % of those jobs are in Munich ( 16,361 ) and Bavaria ( 6,281 excluding Munich ). That means Messe München has created 2,900 additional jobs since the previous study by the IFO Institute in 2013 .
Tax revenues increase 30 % The tax revenues induced in the whole of Germany were € 646m , an increase of 32 % since the 2013 study (€ 490m ). That figure is even 38 % for Munich alone . Most of the taxes go to central government and the other federal states (€ 396m ), while € 217m remain in Bavaria and € 33m in Munich .
Corona effect As an organiser of trade fairs and congresses , Messe München was hit directly and hard by the coronavirus pandemic . “ We lost up to € 230m in revenue in 2020 ,” says Klaus Dittrich . “ Unfortunately , the 1:10 formula also applies negatively the other way round , i . e . the economy as a whole would lose up to € 2.3bn solely as a result of the events in Munich being cancelled ( during the pandemic ).
“ The study ’ s results are impressive testimony to the importance of our events for the domestic economy . A restart not only gives exhibiting and visiting companies the growth boost they urgently need , but also imparts a significant stimulus to economic activity in the entire region .”
24 Issue 4 2023 www . exhibitionworld . co . uk