What Is the

Significance Of the
Events Lesson
Industry?
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4
 Learning Objectives

01 identify the significance of the events industry to the learner’s

development;

identify the significance of the events industry to the country’s

02 development; and
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03 explain the concept of multiplier effect.

 Why Events Industry is important?

Expenditure and Amount of

number of people investments poured
into infrastructure Some professionals
traveling to and
and other make a career out of
staying in destinations
developments, organizing festivals
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to attend meetings,
including roads and and other events
trade shows, or other
events remarkable venues
 How is managing events
significant to you?
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 Have you organized a birthday party for
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yourself or for a friend?

 Have you been to a bazaar or a concert?
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 Have you attended a student
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organization’s meeting or seminar?

 IF YES,
You have taken part in an
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event though such events

may not have been
professionally organized.
 Significance of the Events
Industry on the Country's Point
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of View
 Did you know?
The year 2012 marks a great year in tourism as international tourist arrivals
reached the one-billion mark.

The United Nations World Tourism Organization (UNWTO) counted about

1.035 billion tourists who stayed overnight in another country in 2012, which
is 4% higher than the previous year (UNWTO 2013).
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Southeast Asia is one of the regions that posted a double digit growth at
12% in the same year.
 TOURISM
‘'The activities of persons
traveling to and staying in places
outside their usual environment
for not more than one
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consecutive year for leisure,

business, and other purposes,
except activities remunerated
from within the place visited."
 TOURISM
Events that entail
traveling outside a
person's usual
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environment are therefore

a form of tourism.
 The events industry is
considered an
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important subsector of
tourism for TWO
major reasons:
 QUANTI
MICE events attract guests regardless of the season
TY
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QUALIT
MICE attendees spend more compared to regular or ordinary
Y tourists
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 Two international sporting
events boosted tourism receipts
in three European countries in
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2012
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UEFA European
Football
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London Summer
Olympics and
 EVENTS INDUSTRY
IN OUR
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NEIGHBORING
COUNTRIES
 HONGKONG
Hong Kong's exhibitions industry generated
69,600 full time jobs and US$53 billion in
direct expenditure in 2012, which did not
only result to total of about US$181 million
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tax receipts but created ripple effects in

Hong Kong economy as Well.
HONGKONG
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HONGKONG
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 SINGAPORE
Singapore earned about U553 billion in
2012 from MICE
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SINGAPORE
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THAILAND
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LOI KRATHONG
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 PHUKET
VEGETARIAN
FESTIVAL
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 INDIA
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 HOLI COLOR
FESTIVAL
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FETIVAL
DIWALI
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 PUSHKAR
CAMEL FAIR
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 CHINESE NEW
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RAMADAN
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PHILIPPINES
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 ATI-ATIHAN
FESTIVAL
KALIBO, AKLAN
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 MASSKARA
FESTIVAL
BACOLOD
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 KADAYAWAN
FESTIVAL
DAVAO CITY
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 SINULOG
FESTIVAL
CEBU CITY
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 MORIONES
FESTIVAL
MARINDUQUE
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 PINTADOS
FESTIVAL
TACLOBAN
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 PANAGBENGA
FESTIVAL
BAGUIO CITY
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 HIGANTES
FESTIVAL
ANGONO, RIZAL
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 PAHIYAS
FESTIVAL
LUCBAN,
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QUEZON
 The events industry indeed contributes greatly to a country's
economic development, especially for countries with events
that attract international visitors.

It does not only boost tax receipts and infrastructure

development but also creates a ripple effect in the economy
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where backward links to suppliers and the suppliers'

suppliers add more to the calculation of expenditures,
resulting to what we call the ”multiplier effect”
 MULTIPLIER
EFFECT
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 MULTIPLIER EFFECT
It is a direct economic impact, which is equivalent to
the 'new' money that visitors or outsiders bring and this
money is circulated through spending in the local
economy.
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Examples are the money remitted by overseas Filipino

workers, money spent by a tourist to buy something
directly at a retail shop, and the personal expenditure on
food, lodging, and transportation of visitors attending
meetings.
 MULTIPLIER EFFECT
Multiplier effect is created when different
persons use the same money several times.

Each time the money is transferred from one

person to another means the money is counted
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as that person’s income.

More transfers mean more aggregate

income. More aggregate income means a
bigger economy.
 LEVEL 1 LEVEL 2 LEVEL 3

Shop with $3
Restaurant
Tourist dines staff gets $5 Pay school for
at a $2
restaurant
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Supplier’s staff
and pay get $2
US$10 Supplier
Pays farmer for
gets $5 $3
 Thank you!
Do you have any questions?
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