48th ICCA Congress & Exhibition

Sunday 8 November 2009

International Congress & Convention Association

Economic Structural Changesin Convention Industry: Korea Case Study

Principal Researcher

Chang Soo Park

Professor, Dept. of Tourism Management, Kongju National University, Korea Vice President, Incorporated Association of Korea Convention Forum dr.sooo@hanmail.net +82-10-3172-5000

Researcher

Steve Kim

Director, Marketing, Daejeon CVB

Seung Hee Kim

Project Manager, Winner’s Mind Co., Ltd. Graduate Student, Dept. Hotel and Convention Management,

Kongju National University, Korea

Researcher / Presenter

Introduction

Rapid Growth of Convention Industry in

Asia Pacific region

Increase in importance of CVB’s role for

destination marketing

Needs to evaluate contribution of destination

marketing organizations via specific Index

Convention Status of Asia-Pacific Region

Ranking by Number of meetings per Country

* Source : The International Association Meetings Market 1999-2008, ICCA

(year)

(ranking)

Convention Status of Asia-Pacific Region

Ranking by Number of meetings per City

* Source : The International Association Meetings Market 1999-2008, ICCA

(year)

(ranking)

Year of Center & CVB establishment

Convention Center /Convention Center /Year of center constructionYear of center construction

Year of CVBYear of CVBestablishmentestablishment

Seoul COEX / 1988 2004.

Daegu EXCO / 2001 2003. 1.

Busan BEXCO / 2001 (2001~) 2005. 1.

Jeju ICC Jeju / 2003 2005. 3.

Gyeonggi KINTEX / 2005 -

Gwangju KDJ Center / 2005 2007. 9.

Gyeongnam CECO / 2005 -

Daejeon DCC / 2008 2005.12.

Incheon Songdo Convensia / 2008 2007

Method of Analysis

RSI ; Regional Specialization Index

A region is found to be specialized in a specific industryif the industry has high share in the employment of the region.

Where:

Classifying Convention related Sectors

54 convention related industry sectors

classified from 1,821 sectors

(5th Level, Korean Standard Industrial Classification)

Divide into 20 Main categories

Classifying Convention related Sectors

NoNo CategoriesCategories Convention related sectors from KSICConvention related sectors from KSIC

1 Registration feesEducation, Research and Development, Business and

Professional Organizations, Other Membership Organizations

2 Accommodations Tourist Accommodation, Other Accommodation

3Food and

Beverage servicesRestaurants, Lunch Counters, Drinking Places

4 Transportations

Transit and Ground Passenger Transportation, Road Freight

Transport, Inland Water and Harbor Passenger Transport, Air

Transport, Cargo Handling, Warehousing

5 ToursActivities of Travel Agencies and Tour Operators and Tourist

Assistance Activities, Other Services Allied to Transport Agency

6 Amusement Sports activities and amusement activities

7 Entertainment and

Social functions

General Motion Picture and Video Production, Broadcasting,

Performing Arts Event Promotion and Organization, Library,

Historical Sites and Buildings and Similar Recreation Related

Services, Other Entertainment Facility Operation

Classifying Convention related Sectors

NoNo CategoriesCategories Convention related sectors from KSICConvention related sectors from KSIC

8 Shopping Retail Sale in Non-Specialized Stores

9Meeting room and

Exhibition space rentalReal Estate Activities with Own or Leased Property

10 Audiovisuals Renting of Other Industries Machinery and Equipment

11publishing and printing

materials

Publishing activities, Printing and Service Activities Related

to Printing, Reproduction of Recorded Media, Specialized

Design Services

12Advertisement and

PublicityAdvertising

13

Postage and

Communication

expenses

Postal Services, Wired Telecommunications, Wireless

Telecommunications, Other Telecommunications

14 Website

Computer System Integration Consultancy, Establishment

and Management Services, Software Development and

Supply, Data Processing, Hosting, Portals and Other Internet

Information Media Service Activities, Data Base Activities

and On-line Information Provision Services

Classifying Convention related Sectors

NoNo CategoriesCategories Convention related sectors from KSICConvention related sectors from KSIC

15 Finance and InsuranceFinancial Institutions , Reinsurance, Activities Auxiliary to

Financial Service and Insurance Activities

16Legal, Tax and

Accounts

Legal Services, Accounting, Tax Preparation, Bookkeeping

and Payroll Services

17Setting up Meeting and

Exhibition place

Electrical and Communication Works, Interior and Building

Completion, Architectural, Engineering and Related

Technical Services

18Translation and

InterpretationTranslation and Interpretation Services

19 Security Security, Guard and Detective Services

20Commission for Meeting

plannerExhibition and Trade Fair Organization Agencies

Estimating the RSI of 4 Cities in Korea

Same periodsSame periodsbefore thebefore the

CenterCenterConstructionConstruction

Year of centerYear of centerconstructionconstruction

Year of CVBYear of CVBestablishmentestablishment

Same periodsSame periodsafter the CVBafter the CVBestablishmentestablishment

Jeju 9.2121 9.9158 9.4802 9.4935

Daegu 3.1609 3.0853 2.9483 3.1572

Busan 4.3535 3.4344 3.6398 3.8587

2 years before2 years before Year of CVBYear of CVBestablishmentestablishment 2 years after2 years after

Daejeon 5.6447 5.5026 5.7384

(unit : %)

Estimating the RSI of 4 Cities in Korea

Jeju9.9158

9.48029.4935

3.08532.9483

3.1572

3.43443.6398

3.8587

5.64475.5026

5.7384

Daejeon

Busan

Daegu

Year ofYear ofcentercenter

constructionconstruction

Year ofYear ofCVBCVB

establishmentestablishment

Same periodsSame periodsafter the CVBafter the CVBestablishmentestablishment

9.2121

3.1609

4.3535

Same periodsSame periodsbefore the Centerbefore the Center

ConstructionConstruction

(unit : %)

(2001)

(2003)(2005)

(2007)

(2003)(2005)

(2007)

(1998)

(2001) (2004)

(2007)

(1999)

(2003)

(2005)

(2001)

Economic Structural Changes

Before sameBefore sameperiods ofperiods of

CenterCenterConstructionConstruction

Year of centerYear of centerconstructionconstruction

Year of CVBYear of CVBestablishmentestablishment

After sameAfter sameperiods ofperiods of

CVBCVBestablishmentestablishment

Jeju9.2121 9.9158 9.4802 9.4935

+ 0.7037 - 0.4356 + 0.0133

Daegu3.1609 3.0853 2.9483 3.1572

- 0.0756 - 0.1370 + 0.2089

Busan4.3535 3.4344 3.6398 3.8587

- 0.9191 + 0.2054 + 0.2189

2 years before2 years before Year of CVBYear of CVBestablishmentestablishment 2 years after2 years after

Daejeon5.6447 5.5026 5.7384

- 0.1421 + 0.2358

(unit : %)

Localization Curve – Jeju, 2005(%)

Localization Curve – Jeju, 2007(%)

Estimating the RSI

Classifying Industrial Sectors related International Meeting

and Convention (from ‘Standard Industrial Classification’)

Deriving numerical data (employment / add value / output)

of each Industrial Sectors (from ‘National Statistic Office’)

Calculating Regional Specialization Index using the formula

The higher the RSI, the more specialized is the regional

convention industry.

Conclusions

Rise in Regional Specialization Index of 4 Cities

after CVB established

Destination marketing activities of CVB effect on

regional economic industry structure

Needs to intensify CVB activities for revitalizing

regional economy

Thank you!

48th ICCA Congress & Exhibition

Sunday 8 November 2009

International Congress & Convention Association