Messe Düsseldorf Impacts Germany's
Nationwide Purchasing Power Effects, Adding Around EUR 3 Billion
Thanks to the internationalism of trade fairs and conventions, purchasing power effects in Düsseldorf rise by 15%, having reached EUR 1.66 billion. The spangest beneficiaries are hotels, catering and crafts in Düsseldorf.
Messe Düsseldorf's CEO believes that the company's successful globalisation strategy has had major positive feedback effects on Düsseldorf itself.
Year on year, exhibitors and visitors coming to Messe Düsseldorf trade fairs, conferences, conventions and other events achieve nationwide sales totalling EUR 2.98 billion. This was the result of a recent study by the independent ifo Institute, the Leibniz Institute for Economic Research at the University of Munich, in which it researched the economic impact of Messe Düsseldorf trade fairs and events organised by Düsseldorf Congress Sport & Event GmbH. The study was presented in Düsseldorf today. Moreover, Düsseldorf's business in trade fairs, conventions and other events generated additional tax revenues of more than half a billion euros per year. By running their events, Düsseldorf's trade fair and convention organisers also secure 27,700 jobs throughout Germany.
The study confirms that Messe Düsseldorf and DCSE have a major function as catalysts, both in industry and on the job market - in Germany, North Rhine Westphalia and especially also in Düsseldorf itself: within an average year customers of Messe Düsseldorf and its subsidiary spent around 1.02 billion on events in Düsseldorf. If we also include all the effects that are generated indirectly, then event-induced revenues amount to EUR 1.66 billion. More specifically, every euro that is made by Messe Düsseldorf or its subsidiary generates 6.7 times as much in terms of sales in and around Düsseldorf, providing job security for nearly 16,700 people in this major city on the river Rhine. In addition, the City of Düsseldorf has received EUR 36.3 million in tax revenues from trade fairs and other events, i.e. 22% more than in 2008.
Summing up the results, Werner M. Dornscheidt, Chief Executive Officer of Messe Düsseldorf GmbH, says: "The impact of our trade fairs, conventions and conferences on employment, purchasing power and tax revenues is substantial, particularly in Düsseldorf itself. Over half of all sales induced on a nationwide scale flows into the coffers of the Düsseldorf service sector, i.e. the hotel and catering industries, the craft sector, taxis and retailers. Having reached EUR 1.66 billion, this is now 15% more than in 2008, when the last study was conducted." According to Dornscheidt, the increase is partly due to the world-class quality and international attractiveness of Düsseldorf as a trade fair venue. After all, international trade visitors stay in Düsseldorf longer than nationals ones. "This also explains why the hotel trade benefits so much from our business," he says. "On average, 32% of all annual overnight stays in Düsseldorf are generated by different events at the Düsseldorf Exhibition Centre."
This is also borne out by the study. According to the ifo Institute, the high level of internationalism among trade fair visitors and the above-average increase in delegates at conferences and conventions have boosted the economic impact on Düsseldorf far more than in the rest of North Rhine Westphalia or indeed in Germany as a whole. The CEO of Messe Düsseldorf sees these figures as proof of his company's globalisation and growth strategy under the umbrella of Düsseldorf's span flagship events: "We are taking the topics of our leading global trade fairs into new markets and are thus also generating positive feedback effects for Düsseldorf itself," he says.
Moreover, the effects are not limited to the purchasing power. During the period under review tax revenues rose by as much as 22% and the number of jobs by around 4%. The ones who benefit most of all are employees in the hotel and catering industries. Out of approximately 16,700 jobs, created indirectly through Düsseldorf trade fairs and other events, around 30% are located within those two sectors alone. Another 41% of jobs are in the crafts sector and in event-related services.
CEO Werner M. Dornscheidt adds: "Düsseldorf's indirect returns should in fact be rated much higher, considering that Düsseldorf City Council pays no subsidies in return. For many years now Messe Düsseldorf has been managing itself, growing and investing in its own strength. We are one of the most profitable trade fair companies with their own premises in Europe: In 2016, when the net revenue of our Group was EUR 443 million, our cycle-related net profit was nearly EUR 59 million. Also, we paid out EUR 17 million worth of dividends to Düsseldorf.
Socio-economic effects on the city of Düsseldorf are generated not only by trade fairs, but also by conventions, conferences and other events created by Düsseldorf Congress Sport & Event GmbH. Hilmar Guckert, spokesman for the Management of Düsseldorf Congress Sport & Event GmbH, is extremely pleased with the results of the ifo study: "Compared with the last study in 2008, this recent one showed substantial two-digit growth in purchasing power, in the number of secure jobs and in tax revenues, all generated by our six event venues in Düsseldorf. The share of these economic effects that have benefited Düsseldorf is around 70% and therefore particularly high, while the indirect returns factor for Düsseldorf is as high as 10.8. The study therefore underlines that Düsseldorf has benefited particularly widely from our event business."
Images: R. Eberhard, messekompakt.com, EBERHARD print & medien agentur gmbh
Source: Messe Düsseldorf