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The impact of association meetings.

A new Convention Liaison Council study reaffirms that associations make up the lion's share of the meetings market.

You know how important your annual convention, educational seminars, trade shows, and other meetings are to your association. If you are typical, these meetings are responsible for almost a quarter of your total income.

You know that meetings occupy more of your time than any other single activity. And you know that you are the prime target of much of the advertising done by the hospitality and tourism communities. What you may not know is just how significant a role your meetings--along with those of other associations--play in the overall U.S. economy.

The more we probe the elusive association community, the more it emerges as one of the most underestimated of all industries in the country.

In a new study completed for the Convention Liaison Council, Washington, D.C., by Deloitte & Touche, Parsippany, New Jersey, new dimensions for the giant association meetings industry emerge. Considered as a single $75.6 billion industry, conventions, expositions, meetings, and incentive travel ranks 17th among all U.S. private sector industries, as defined by the U.S. Department of Commerce. The association meetings industry accounts for 71% of that market and taken alone is the 23rd-largest industry in the United States.

During 1991, association-sponsored events generated almost $54 billion--almost 71% of the total meetings market, according to a landmark study conducted by Deloitte & Touche for the Convention Liaison Council. The direct spending of the conventions, expositions, meetings, and incentive travel industry supports 1.5 million full-time equivalent (FTE) jobs in the United States. Conventions, expositions, meetings, and incentive travel account for $22.6 billion of the hotel industry's operating revenue--36% of all hotel revenue--and an even higher percentage among business hotels. Almost 4 out of every 10 room nights are used in connection with a meeting. Meetings and conventions generate 22% of the operating revenue of the air transportation industry.

The U.S. Travel Data Center says that almost one of every two airline tickets issued is for business travel (48%).

Meetings also account for $10.5 billion in taxes--44% in state and local taxes and 56% in federal taxes. In 1991, the conventions, expositions, meetings, and incentive travel industry generated an estimated $75.6 billion in direct spending. This direct spending supported an estimated 1.5 million full-time equivalent (FTE) jobs in the national economy and produced an estimated $10.5 billion in tax revenues at the federal, state, and local levels. Through the economic multiplier effect, respending related to the industry generated an estimated total economic output of $224.9 billion and supported an estimated 2.9 million FTE jobs.
COPYRIGHT 1993 American Society of Association Executives
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Copyright 1993, Gale Group. All rights reserved. Gale Group is a Thomson Corporation Company.

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Publication:Association Management
Date:Jul 1, 1993
Words:447
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