Amidst the difficult time for the whole economy, the German Event Management Interest Group (IGVW), together with FAMAB Kommunikationverband eV and all relevant associations in the MICE industry, have developed an extensive meta-study on the overall economic importance of German MICE sector.
The study was conducted by experts across the relevant associations. More than 20 national and international studies and articles were analyzed, and the results were presented in a compressed form.
Sixth Largest Industry, 424 Million Visitors
The study provides important insight into the importance of the German MICE industry. According to the data, the event industry generates core and peripheral sales of €130 billion which makes it the sixth-largest industry in Germany. Moreover, almost 1 million people work in the industry. This makes it one of the largest employers in Germany.
Events in Germany have 424 million visitors from home and abroad every year. This makes it the biggest driver for gastronomy, the hotel industry and travel services. Without functioning event management, considerable losses in sales can be expected across these sectors.
A catalyst for the Economy, Tax Revenues
Events and live communication are also a vital part of corporate communication. They are one of the most important sales channels for medium-sized companies in particular and, in time of crisis, a catalyst for the overall economic upturn.
Furthermore, the event “ecosystem” ensures positive effects and considerable tax revenues for the federal and state governments thanks to its high level of profitability at local, regional and national levels. Tax revenues from sales amount to approximately €20 billion yearly.
Finally, the study noted that the already clear wave of insolvency in the industry will have significant negative effects on the entire German economy.
How to Save the Industry?
However, the MICE industry was heavily struck by the Coronavirus crisis. To save it, €1 billion will be needed by the end of the year. The core industry companies alone generate annual sales of €8.25 billion and they need 2% of their annual turnover as compensation per month (€160 million) for the next half a year.
The €50,000 per month previously envisaged by the government for just 3 months are only enough to save a tenth of the companies. In the meantime, 60% of all companies have threatened to go out of the business this summer.