The benefits of business event tourism in Australia

Abstract

The purpose of this study is to examine the range and impact of the benefits of business event tourism from the perspective of the host destination. In terms of the direct tourism spend, it is well established that business event participants are high yield visitors, staying longer and spending significantly more money per day than the average tourist (Deery, Jago, Fredline & Dwyer, 2005). As a consequence of their contribution to the Australian economy when viewed from a tourism perspective, business events have been referred to as the ‘golden seam’ of tourism (Foley, Schlenker, Edwards & Hayllar, 2010). However, as well as addressing the direct benefits that accrue to the host destination in terms of tourism dollars, the study explores those impacts that, although more difficult to quantify (Melbourne Convention and Visitors Centre, 2011), are likely to be substantially greater than the direct financial benefits that have been the traditional focus of research in this area. Other benefits that are the focus of this study include: opportunities for the development of contacts and networks; exposure to new ideas, international knowledge and world’s best practice, and the flow-on effects in terms of education, innovation and collaborative research; the potential development of business alliances; and, possible increases in trade (Foley et al., 2010; Jago & Deery, 2010; Melbourne Convention and Visitors Centre, 2011). Secondary data was utilised to examine the direct financial benefits of business event tourism in Australia. Research into the broader benefits of business event tourism that are not related to the direct tourism spent, is still in its infancy. In view of the exploratory nature of this aspect of the study, a qualitative approach involving the conduct of semi-structured interviews was adopted. The interviews were carried out with representatives from four separate business events held in Melbourne during 2010 and 2011. The events come from a range of different industry sectors. In view of the limited sample size, more research is obviously necessary. However, findings of this study indicated that the beneficial impacts of business event tourism on the host destination are substantial and extend well beyond the direct financial benefits. For each of the four business events, benefits were identified from the perspectives of both event organisers and industry practitioners. Benefits that were regarded as particularly important included exposure to, and the dissemination of, cutting edge international knowledge and a broad range of flow-on effects. The development of useful contacts and networks was also seen to be of considerable value. In terms of business event tourism destinations, the opportunity to showcase Melbourne and its business event venues and facilities was also regarded as an important benefit.