There is no gain stating the fact that any kind of business event is highly beneficial for improving the economy of the specific nation. While the business events bring in high profile people working in senior designations in different professional sectors in a country, who share their expertise with a specific country, these events also help in knowledge transfer, employment generation as well as industrial development (Rogers & Davidson, 2015).
Economic Impacts of Business Events:
Role of Business Events in Employment Generation:
In Chapter 1, I learnt that the business events industry of Australia has played an integral role in reviving the economy of the nation. The Business Events Council of Australia has recently released a research report that intends to analyze and examine the economic contribution of the business events sector in the Australian economy. According to the published report, more than 37 million people from all over the world had attended approximately 412,000 business events held in Australia between the years of 2013 to 14, that in turn had helped in generating 179,357 number of jobs in Australia (Coates et al., 2014). The employment opportunities are being created as the business events help in creating a platform that offers great opportunity to the local residents of Australia to showcase their local business, as well as professional and academic accomplishments. Besides, in the field of research, the local residents of Australia are being exposed to newer and more recent forms of technology, which helps in improving the access of the residents to the latest developments, thereby making the less privileged residents also enhance their professional expertise. Unemployment fell over the years from the peak at 5.7% in late 2009 and to 5.2% in 2012 (Coates et al., 2014).
Growth of National Revenue:
Apart from creating employment opportunities in Australia, I believe that the organization of business events have a positive impact on the GDP and net revenue of the nation. According to the Deloitte Report, every one dollar spent in five by an international visitor in Australia is derived from the business events organized in the country (Ruhanen & Whitford ,2014)). Apart from the creation of approximately 22,000 jobs in Australia in the ear of 2012, I also came to know that the Deloitte Report showed how the business delegates generated $2.2 billion in the GDP of the nation (Page & Connell, 2014). Further, it is also important to mention here that the business delegates coming to Australia are inclined to spend almost 21% more than the international visitors coming for a simple trip to Australia, and hence their contribution to the national economy is self-evident.
International Visitor Comparison Chart of Australia
Source: (Forsyth et al., 2014)
Benefits of the Local Economy:
Chapter 1 has also helped me understand that business events have also been helping Australian economy by benefitting the local businessmen as well. The business events visitors visit the exhibitions as well, and consequently these exhibitions are known for generating direct value add of approximately $1.5 billion (Alonso et al.,2015). The business delegates spend a considerable amount of money in the local market of Australia that I believe add up to economy of the country.
Average Amount Spent by the Business Events Visitors in Australia
Source: (Munro & Moore, 2013)
Resistance of the Residents to Business Tourism:
Chapter 1 helped me to understand the negative impact of tourism on on the host communities, and consequent resistance of the Australian residents to the development of business tourism industry. Many residents of Australia are found opposing the spread of business tourism, as they have complained about the poor, unstructured development of infrastructure that does not fit the natural or social landscape of the country. I also got to know that despite the economic opportunities, noise disturbance, over-utilization of natural resources or increased friction between the community members, proper development of the business tourism is more than a challenge in Australia.
The inflation is undoubtedly another economic impact caused by business tourism in Australia. I believe that though any form of tourism leads to inflationary problems, considering the growth of business tourism sector, business tourism is largely responsible for the higher rate of inflation here. The business sectors in Australia come for a long period of time, considering the huge size of the sector presently. In fact, I would to like to mention here that according to a recent research report, in the period of 2013-14, Australia hosted approximately more than 412,000 of business events (Lai & Scott, 2015). Consequently, a huge number of foreign tourists come to Australia every year at almost regular interval, that increases the consumption of the tourists in the areas of hotels and restaurant services, law services or car rental and escort services. Consequent on the over-consumption of the foreign business visitors, there is an inflationary pressure which in turn affects the local residents of Australia.
It is needless to state here that although the value of the business events in the year of 2012 was as high as $24 billion, the arrangement of the business events involve a huge expense on part of the government as well as other agencies (Smith, 2014). Hence, proper economic assessment of the scope of each business event, as well as proper cost-benefit analyses is also required to ensure economic success. The net amount of expense incurred by Australia for tourism purpose in the year of 2014 was more than $700 million (Smith, 2014). From the year of 2012, I have observed that the Australian economy has witnessed a rise of 3% in the total expenditure (Ghimire, 2013). For supporting the infrastructure of Australian business events sector, the government of Australia has to spend a considerable amount of money in the fields of accommodation as well as aviation.
Exploitation of Natural Resources:
Any sort of tourism, including the business tourism activities destabilizes the local resources of Australia. I believe that in order to generate business and income, a sustainable approach towards tourism is highly important. However, in case of Australian business events, a large number of foreign visitors arrive at Australia, many of whom are indifferent to the ecological balance of the nation, that has not only harmed the environmental sustainability, but has also resulted in the negative attitude of the native residents of the country (Mowforth & Munt, 2015). Apart from the scarcity in the supply of energy, food and water, a major problem is that the initiators of the business events are drive by short-term gains from the Australian economy, and thus tend to set up business events along undistributed coastal areas, that I believe largely disturb the ecological balance of the country.
Governments are motivating business events
Government of different countries is motivating business organizations to conduct business vents in their countries. The reasons can be understood if I see the effects of business events on those countries. For instance, Singapore hosted nearly 4 million business visitors in the year of 2014 .These visitors spend near about S$6 billion in Singapore that includes expenses related to sightseeing, entertainment and gaming expenditure (Connolly et al., 2014). In the case of Australia, the example of the event hosted by the Royal Australian Mint can be taken as an example. The event named as Mint Directors Conference was conducted in the year of 2010 in Canberra with over 350 industry representatives. The conventional economy of Australian tourism gained nearly $450,000 to ACT economy and $650,000 to wider Australian economy from this event (Connolly et al., 2014). On the other hand, as a result of this event, Canberra and its local government was able to showcase local talent, improve reputation of the region as a global leader and enhance its status as a business event purpose. According to Sandberg (2016), in Australia, the value of business events to the economy was $24 billion. This is another reasons that government of Australia is focusing encourage business events in the country.
Comparison between Australia and Singapore for business events
Growth: Australia has an established economic resilience where adaptability and steady growth delivers a safe and low-risk environment for conducting any type of business event. On the other hand, Australia is in its 26th year of continuous economic growth which is underpinned by some powerful institutions, outstanding service sector and capacity to respond to worldwide changes. Its economy is world’s 23th largest which is rated AAA by three global rating organizations (Australia, 2016).
Location: In terms of location, Australia is well established as a trade and investment base for worldwide companies for conducting business with Asia. Trade agreements of the country assist smooth flow of goods and services with big economies across Asia, Europe and North America.Business: Political stability along with translucent authoritarian system and sound governance frameworks has helped Australia to rank in top five on the index of Economic Freedom. Efficient governance of the country is providing secure environment to conduct business events for multinational companies. Australia’s business environment is ranked 15 th among 190 countries (Appel et al., 2014). Besides, Australia is ranked 7 th in terms of quality of life which is also an attractive reason for companies to conduct events in there.
Likewise Australia, Singapore is also renowned as the world’s one of the easiest places to do business. In Singapore, currently 150 international organizations exist along with 7,000 MNCs (Sharples, 2014).
On the other hand, Singapore has nearly 100 world class airlines that allow event managers and business personnel to travel to 300 cities worldwide (Rogers & Davidson, 2015). Besides, Singapore also includes scrumptious dining to one-of-a-kind shopping and heart pounding amusement that provides an innumerable of rousing experiences in this island city.
Transportation system in the country is extremely well established and therefore it is easy to get around in Singapore by taxi, bus or train. Besides, the country is sheltered from natural disasters. Crime rate is low in Singapore and the country is politically stable. Therefore, it is a good destination for conducting business event.
Social and economic impacts of large scale events
Social impacts: Every event that is conducted in a community has direct social and cultural impact on the participants. Sometimes it also impacts wider host communities too. Events have the ability to deepen pride of communities, introduce new and challenging ideas and help to stimulate the ethnicity of the host community (Mair & Whitford, 2013). Major events sometimes develop inadvertent results that can seize the schema and conclude the way the public perceives the event if not managed appropriately (Inversini et al., 2015). Such consequences can be in forms of material abuse, negative behavior by crowds and increase in criminal activities. According to Richards et al., (2013), events can also affect social life and community structures in several ways. For instant, car traffic, that may obstruct the access to resident’s home, loss of facilities, cost increase of goods and services that can easily increase house markets which in turn impacts on the low-income groups.
Positive Social Impact
Negative Social Impacts
Developing pride of community
corroboration of community groups
Exploitation of community
Development of cultural viewpoint
Improved community contribution
Economic Impacts: Business events generate more business opportunities for host communities. Events can also put economic impact on host communities by leveraging the business outcomes as it reflects on the reimbursement to local businesses and through them to the society at large. Creating employment opportunities is another way that an event can impact on host communities. However, Depken and Fore B (2016)) argued that jobs provided by business events are short term jobs where most employers look to use facilitate existing staffs rather than employing new employees.
Positive effect on economy
Negative effect on economy
Creation of jobs
Loss of genuineness
Improved tax revenue
Cost of opportunities
Opportunity for business
Community resistance to tourism
It is important to mention here, that as far as Australia is concerned, the Business Events Industry is all set to achieve its goals of attracting $16 billion investment by the year of 2020. Although the business meetings and conferences have fostered a remarkable growth in creating a stronger economy, accompanying increased rate of expenditure, higher inflation or lack of sustainable approach continues to hinder the growth of the sector here. According to me, there are multiple economic prospects of business tourism in Australia, considering the nation adopts a more organized approach to the problem.
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