Economy of convention and exhibition event: estimation and concepts

Economy and management of the enterprise

The MICE industry is one of the most progressing sectors of world economy, which provides an enormous multiplicative socioeconomic effect, developing the country’s economy. These are tax revenues to budgets of various levels from exhibition organizers, service organizations, cultural institutions, transport, hotel and restaurant sector enterprises from expanding and creating new industries, increasing commodity circulation, creating new jobs, attracting investments. The system of organizing congress and exhibition events is multilevel and affects all levels of the country’s economy. A special sector of the economy appeared – the MICE industry (Meetings, Incentives, Conferences, Events). For the real sector of the economy, congress and exhibition events become an effective tool for innovative development, form the necessary information field, direction of financial flows and additional income to budgets of all levels. At the regional level convention and exhibition industry reveals competitive and innovative potential of the territory, builds its external image in terms of investment attractiveness, widens the access to innovative technologies, know-how, specialized services, joint collaboration projects, supports employment-to-population ratio by providing new jobs, and affects the overall trade and economic effect and budgetary efficiency due to the achieved gross domestic product. In addition, it is important to understand that the holding of congress and exhibition events is associated not only with the positive economic effect, but also with the image for the city, country, and even for the particular industry in which the congress and exhibition event is held. Thus, the image-building, non-material effect also affects the promotion of the city itself as a center of attraction for the business community, and the main theme of the event. Moreover, this is a possible increase in the number of events in the future. For each participant in this system, methods are needed to evaluate the effectiveness of their participation, the appropriateness of the resources invested, and the effect of the result. In this article, the authors present the assessment of convention and exhibition events on the part of participant, organizer and regional authorities. The authors also analyze the basic principles of organizing convention and exhibition events.